1. Calculate the requested measures for bonds A and B (assume that each bond pays interest semiannually): A B Coupon 11.0% 12% Yield to maturity 11.0% 11.50% Maturity (years) 5 7 Par $100.00 $100.00 Price $100.00 $102.36 a) Price value of a basis point (DV01) b) Macaulay duration c) Modified duration d) Convexity measure (Use the cash flow method) e) Use approximate duration and approximate convexity formulas and compare your results with cand d. 1. Calculate the requested measures for bonds A and B (assume that each bond pays interest semiannually): A B Coupon 11.0% 12% Yield to maturity 11.0% 11.50% Maturity (years) 5 7 Par $100.00 $100.00 Price $100.00 $102.36 a) Price value of a basis point (DV01) b) Macaulay duration c) Modified duration d) Convexity measure (Use the cash flow method) e) Use approximate duration and approximate convexity formulas and compare your results with cand d