a) Value a 3-year annual-pay bond with a 5% coupon and a par value of $1,000 using forward rates b) Compute the corresponding spot rates Problem 10. A bond dealer provides the following selected in formation on a portfolio of fixed-income securities. a) What is the effective duration for the portfolio? b) Calculate the price value of a basis point for this portfolio. c) What is the approximate price change for 7% bond if its yield to maturity increases by 25 basis points? a) Value a 3-year annual-pay bond with a 5% coupon and a par value of $1,000 using forward rates b) Compute the corresponding spot rates Problem 10. A bond dealer provides the following selected in formation on a portfolio of fixed-income securities. a) What is the effective duration for the portfolio? b) Calculate the price value of a basis point for this portfolio. c) What is the approximate price change for 7% bond if its yield to maturity increases by 25 basis points