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A 25-year semiannual bond has 10% coupon rate and par value $1,000. The current YTM of the bond is 10%. Its Macaulay duration is 9.58

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A 25-year semiannual bond has 10% coupon rate and par value $1,000. The current YTM of the bond is 10%. Its Macaulay duration is 9.58 years and convexity is 141.03. (1) What is the bond's modified duration? (2 points) (2) What is the percentage price change if interest rate were to fall 125 basis points considering both duration and convexity? (4 points) (3) What is the estimated price with 125 basis points decrease in yield? (4 points)

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