A five-year, 5.0% bond with a YTM of 6.5% has a duration of 4.53 and convexity of 26.26. The bonds current price quote is 93.766. Assume the bond pays annual coupons and has a par value of $1.000.

a. Compute the percentage change in the bonds price if its YTM increases 50 basis points.

b. Estimate the percentage change in the bonds price using modified duration and the convexity correction (the duration & convexity rule) if the bonds YTM increases 50 basis points.

c. Compute the percentage change in the bonds price if its YTM decreases 85 basis points.

d. Estimate the percentage change in the bonds price using modified duration and the convexity correction (the duration & convexity rule) if the bonds YTM decreases 85 basis points.