4. A) Why is modifiod duration an inappropriate moasure for a high- coupon callable bond? Whal would be on appropriate measure than offective duration (5 marks) B) Consider a 20 year, semiannual pay bond with 8% coupon that is currently priced at $908.00 to yield 9%. Calculate the bonds effective duration and effective convexity for a 50 basis point change in yield. (10 marks) C) Politicians in Africa, America, Europe and other parts of the world aro focusing on measures, both monetary and fiscal in nature, which would reduce the levels of unemployment in their respective countries. In Zambia the PF lead government has taken this to be one of its important manifesto promises it is doing everything possible to achieve this. In the light of the above, you are required to discuss tho evils of unemployment to human life and to distinguish cyclical, structural and frictional types of unemployment. D.) Iho 2-period spol rato.s, ts 8% ond tho current l-period (spot) ralo Is 4 (this is bolh S, and its). Colculato tho forward tolo tot ong porlod, ono poriod from now, I. . 4. A) Why is modifiod duration an inappropriate moasure for a high- coupon callable bond? Whal would be on appropriate measure than offective duration (5 marks) B) Consider a 20 year, semiannual pay bond with 8% coupon that is currently priced at $908.00 to yield 9%. Calculate the bonds effective duration and effective convexity for a 50 basis point change in yield. (10 marks) C) Politicians in Africa, America, Europe and other parts of the world aro focusing on measures, both monetary and fiscal in nature, which would reduce the levels of unemployment in their respective countries. In Zambia the PF lead government has taken this to be one of its important manifesto promises it is doing everything possible to achieve this. In the light of the above, you are required to discuss tho evils of unemployment to human life and to distinguish cyclical, structural and frictional types of unemployment. D.) Iho 2-period spol rato.s, ts 8% ond tho current l-period (spot) ralo Is 4 (this is bolh S, and its). Colculato tho forward tolo tot ong porlod, ono poriod from now