A bond is semi, coupon 8%, ytm 3%, 8 years, callable @ 101 in two years. The reinvestment rate is 2%.

a. Price?

b. Current Yield?

c. YTC?

d. Two year holding ROI, excluding call.

e. Total coupon?

f. FV of coupons @ RR.

g. MIRR/ Total ROI of bond? Note it must be between RR and YTM.

h. Total amount per bond in the account at maturity?

i. # of bonds required to fund a $100MM liability?

j. Cost to fund the liability?

k. Effective duration?

l. Effective convexity

m. % and $ change in the bond if the change in interest rates is plus 75 bps, using duration an convexity.

n. Actual change in ($ %) in bond using the calculator.

o. Error?