Question: Question 8 2 pts A bond with face value = 4,000 currently trades at par. Its Macaulay duration is 5.95 years and its convexity is

Question 8 2 pts A bond with face value = 4,000

Question 8 2 pts A bond with face value = 4,000 currently trades at par. Its Macaulay duration is 5.95 years and its convexity is 54.97. Suppose yield currently is 5.81%, and is expected to change to 3.31%. Calculate the approximate dollar change in price using both duration and convexity. Assume annual compounding. Round your answer to 2 decimal places

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