Submit an R file ,use number00, create yield by adding 0.05 to the 00 divided by 10000 (example: if last 2 digits are 26, theny= 0.05 + 26/10000 = 0.0526). Create coupon by dividing the last 2 digits by 100 and adding 5.2 to it (example continued: 26/100 + 5.2 = 5.46). Now, using your unique coupon and yield, assume your bond has 25 years to maturity and pays a semiannual coupon (assume settle date is a coupon date). Answer the following questions:

1. (a)What is the price of the bond? (1)
2. (b)What is the modified duration? (1)
3. (c)What is the convexity measure? (1)
4. (d)What is the DV01 per million dollars? (1)
5. (e)Now consider 2 scenarios: The required yield rises 150 bps and the required yield falls 150 bps.
6. (a)Usingjust duration, what is the predicted price when yields rise 150 bps and when (2) they fall 150 bps?
7. (b)Usingbothduration and the convexity measure, what is the predicted price when (2) yields rise 150 bps and when they fall 150 bps?
8. (c)What are the actual P/Ls that would be realized on$20 million of face if rates rise (2) and fall by 150 bps? (Note: You will compute the actual price change in thescenarios.)

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source('Fixed Incomefn.r') id