Question: Use this data to answer questions. (assume that each bond pays interest semiannually): Bond A Bond B 6% 7% 6% Coupon Yield to maturity Maturity

Use this data to answer questions. (assume that each bond pays interest semiannually): Bond A Bond B 6% 7% 6% Coupon Yield to maturity Maturity (years) Par 6% 2 $100.00 5 Price $100.00 $104.265 $100.00 Using modified duration + convexity, calculate % change in price of the two bonds if the yield goes UP by 10 basis point. O 0.186.0.418 O 0.228.0452 0 0.209.-0.521 -0.186,-0.418

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