2. Longevity : " newly issued band has a maturity" If IN Years and pay's & The coupon rate ( will! coupon HEYWILLIE Coming once annually ] . The band sells at par Value of ZION. l'ai What are the duration , modified duration and dollar duration of the band !" That is its convexity' ! Ibj Find the actual price of the band assuming that ing vield In maturity immediately increases from ]!^ I'd; What price would be predicted by using duration !" What is the prediction error ! ['N'; What price would be predicted by using duration _ with_convexity' ?" What is the prediction emnr ?"