A 10-yr bond has 4% semi annual paying coupon to yield an annual rate 5%. Find the Macaulay duration and convexity of the bond.

Macaluay Duration =

Modified Convexity=

FORMULA LIST Current Yield Annual Coupon / Price Quoted Price (Actual Price / Par Value) x 100 Macaulay Duration txC nxM Et=1 (1ty)* + (1+y)" Current Bond Price Modified Duration Macaulay Duration / (1 + r) Effective Duration (PV_) - (PV+) 2 x (ACurve) x PVo