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7.) Consider the following bond. TTM is in years. Coupon: 7% YTM: 8%. TTM: 11. a.) Calculate the PVBP (aka DV01). b.) Calculate the modified

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7.) Consider the following bond. TTM is in years. Coupon: 7% YTM: 8%. TTM: 11. a.) Calculate the PVBP (aka DV01). b.) Calculate the modified duration c.) Assume a decrease in YTM of 75 basis points. Calculate the new price in three ways: using the modified duration formula, using PVBP, and the true new price using your calculator

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