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

Use this data to answer questions. (assume that each bond pays interest semiannually) Bond A Bond B 6% 7% Coupon Yield to maturity Maturity (years) 6% 6% 2 5 Par $100.00 $100.00 $100.00 $104.265 Price 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. 0.452 0 -0.209, -0.521 0 -0.186,-0.418

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