A)Consider the following prices of financial instruments for 100 basis point changes in yield. Which of these securities exhibits negative convexity?

Security	Inital Price	-100bps	+100 bps
A	100	105.47	96.23
B	100	104.27	97.23
C	100	103.27	96.47

a. A

b. Both A and B

c. C

d. Both B and

B)Estimate the modified duration of Security B

a. 2.57

b. 3.52

c. 4.23

d. 7.04