Use the same set of data to answer questions Part 1-3. Complete your calculation in Excel.

Par value	$100.00
Coupon rate	4%
Frequency	2 per year
Yield-to-maturity	6%
Term to maturity	3 years

Part 1.

Whats the price of the bond?

$97.62

$94.58

$106.81

$102.74

Part 2.

Whats the Macaulay duration of the bond?

2.67 years

2.15 years

2.43 years

2.85 years

Part 3.

If the yield increases by 1%, how will the duration and convexity impact the bond price?

The price will decrease by $4.75.

The price will decrease by $2.58.

The price will increase by $3.42.

The price will increase by $5.44.