(a) Compute the (1) the dollar duration and the (2) the dollar convexity of a 3-year, $100,000 face-value, 4%p.a. annual coupon bond when the vield is 2%p.a..(b) Compute value of the above bond if its vield rises from 2%p.a. to 4%p.a(c) Using the dollar duration and the dollar convexity, compute the approximate dollar decrease in the value of the bond when the yield rises from 2%p.a. to 4%p.a. What is the dollar size of the error associated with duration and convexity approximation of the change in bond value?