A six-year bond, with a Face Value of $1000 has yield rate of 5% compounded continuously, and coupon rate of 6% compounded semi-annually, paid every half-year. You are required to: a) compute the price of bond b) compute the the duration of bond c) compute the convexity of bond. d) Use duration to estimate the effect of a 1% increase in the yield on the price of bond. e) Use convexity to estimate the eect of a 1% increase in the yield on the the price of bond. f) How accurate is the estimated price of the bond based on your answers in (d) and (e). Hint: You will need to calculate the price of the bond given a 1% increase of the yield and compare your answers with parts (d) and (e).