Question: Question No 01 (10 Marks) A $1,000 par value bond with 3 years to maturity and a 6% coupon has a yield to maturity of

Question No 01 (10 Marks) A $1,000 par value bond with

Question No 01 (10 Marks) A $1,000 par value bond with 3 years to maturity and a 6% coupon has a yield to maturity of 8%. Interest is paid semi-annually. Calculate the following: (a) Price of the bond (b) Calculate the modified duration for the bond (c) Calculate the convexity of the bond (d) Estimate the percentage price change if the yield falls 350 basis point by considering both duration and convexity

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