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1. Calculate the requested measures for bonds A and B (assume that each bond pays interest semiannually) A B Coupon 8% 9% Yield to maturity

1. Calculate the requested measures for bonds A and B (assume that each bond pays interest semiannually) A B Coupon 8% 9% Yield to maturity 8% 8% Maturity (Years) 2 5 Par $100 $100 Price $100 $104.055

a. Price value of a basis point

b. Macaulay duration

c. Modified duration

d. Convexity show solution

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