2.8 a. (7 points) Calculate the duration of an 8 percent, $1,000 par bond maturing in two and a half years if the yield to maturity is 7 percent and interest is paid semiannually. b. (3 points) Calculate the modified duration for this bond. 2.9 Calculate the convexity of the bond in 2.8. 2.10 Given the results in 2.8 and 2.9, if the price before yields changed was $1,022.58, what is the resulting price taking into account both the effect of duration and convexity if yields increase by 40 basis points