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11) Calculate the requested measures in parts for bonds A (assume that the bond pays interest semiannually): a. What is the price value of a
11) Calculate the requested measures in parts for bonds A (assume that the bond pays interest semiannually): a. What is the price value of a basis point for bond A ? ( 2 points) b. Compute the Macaulay durations for the bond. (2 points) c. Compute the modified duration for the bond. (2 points) d. Compute the convexity measure for Bond A. Don't forget to report the convexity measure in years. ( 2 points) e. Calculate the actual price of the bond for a 100-basis-point increase in interest rates. (2 points)
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