2. Use the FixedIncomeFn functions to give examples of the following relationships:

1. (a) For the same required yield, payment frequency and time to maturity, the lower the (1) coupon the higher the modified duration.

2. (b) For two bonds with the same modified duration and time to maturity, the higher the coupon (2) the higher the convexity. (Note: In order to match modified duration, the required yields will differ.)

3. (c) Give an example where the modified duration of a 10-year zero-coupon bond with semian- (2) nual compounding has a lower modified duration than a similar 10-year bond with a 3% coupon.