A 5-year Treasury note (T-note) has a face value of $100 and a 4.88% coupon rate (assume annual payments).

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(a) Compute the price of the T-note.

(b) Suppose that the yield curve suddenly shifted down by 0.25% (this is a parallel shift, all points on the yield curve shift by the same amount). Compute the new price of the T-note and report the price change relative to the original price computed in (a).

(c) Compute the absolute value of price elasticity || of the T-note as defined above.

(d) Compute the approximate price change based on the price elasticity.