2. A 10-year maturity bond making annual coupon payments with a coupon rate of 5% and currently selling at a yield to maturity of 4% has a convexity of 145.4. (8 points) a. Compute the Modified Duration of the bond. b. Based on the information above, compute the approximated new price using the Duration & Convexity adjustment if the yield to maturity increases by 75 basis points. c. What is the percentage error? 2. A 10-year maturity bond making annual coupon payments with a coupon rate of 5% and currently selling at a yield to maturity of 4% has a convexity of 145.4. (8 points) a. Compute the Modified Duration of the bond. b. Based on the information above, compute the approximated new price using the Duration & Convexity adjustment if the yield to maturity increases by 75 basis points. c. What is the percentage error