Suppose in Month 1 the yield on ten-year bonds issued by the government in a country...

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Suppose in Month 1 the yield on ten-year bonds issued by the government in a country was 1.8% (also the coupon rate). In the following Month 2, the yield was 2.3%. Predict the effect of these changes in yield on the price of the ten-year government bonds, assuming a face value, of 1000. You will need to calculate the duration, modified duration, and convexity and clearly explain your results. Suppose in Month 1 the yield on ten-year bonds issued by the government in a country was 1.8% (also the coupon rate). In the following Month 2, the yield was 2.3%. Predict the effect of these changes in yield on the price of the ten-year government bonds, assuming a face value, of 1000. You will need to calculate the duration, modified duration, and convexity and clearly explain your results.