$(9$ points$)$ A bond has $3$ years to maturity, a $8\%$ annual coupon and a par value of $$100.$ The bond

pays a continuously compounded interest of $7\%.$ Suppose the interest rate goes down to $6\%.$ What

would be the percentage change in the price of the bond implied by the duration plus convexity

approximation? If you want to hedge this bond using a $5-$ and $6-$year zero$-$coupon bond, what will your

total hedge position be$?($You need to consider both duration and convexity hedging!$).$ all calculation pls