A five-year $1000 face value bond has a 5% coupon rate and a 10% yield to...

A five-year $1000 face value bond has a 5% coupon rate and a 10% yield to maturity. It makes annual coupon payments selling for $810.46. Please calculate this bond’s (20 points)

Macaulay duration
Modified duration
Convexity
If the interest rate rises by 100 bps, what would be the dollar amount change in price?

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ANSWER IN THE IMAGE ((YELLOW HIGHLIGHTED). FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE.

jeff jeffy answered 1 year ago

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