A 2-year 8%pa semi-annual coupon-paying bond has just been issued and is trading at a yield of 9.5%p.a. The bond has a face value of $500. Use the table method to calculate the following: a) Calculate the current value of the bond (2 marks) b) Calculate the Macaulay duration of the bond (3 marks) c) Assume the yield decreases to 8.7%p.a. Using your duration measure, what is the estimated value of the bond? (2 marks) d) Calculate the convexity of the bond at a yield of 9.5%pa. (3 marks) e) Assume the yield falls to 8.7%p.a. Using your duration and convexity measure, what is the estimated value of the bond? (3 marks) f) Calculate the actual value of the bond when the yield falls to 8.7%p.a. and comment on your result compared to your answers to parts c&e