11.

a. Use the duration (first-order) approximation models to estimate bond value increases induced by changes in interest rates (yields) to 10% for each of the bonds in Problem 10 above.

b. Use the convexity (second-order) approximation models to estimate bond value increases induced by changes in interest rates (yields) to 10% for each of the bonds in Problem 10 above.

c. Find the present values of each of the bonds in Problem 10 above after yields

(discount rates) change to 10%.