An eight-year, 4.0% bond has a YTM of 4.8%, a duration of 6.97 and convexity of 59.78. 8 pts

a. Compute the percentage change in the bonds price if its YTM rises to 5.4%.

b. Estimate the percentage change in the bonds price using modified duration (the duration rule) if its YTM rises to 5.4%.

c. Estimate the percentage change in the bonds price using modified duration and the convexity correction (the duration & convexity rule) if its YTM rises to 5.4%. If it increases to 4.9%.

d. Estimate the percentage change in the bonds price using the duration rule if its YTM falls to 4.4%.

e. Estimate the percentage change in the bonds price using the duration & convexity rule if its YTM falls to 4.4%.

7. You are immunizing a $19.5 million cash flow that occurs five years from today. You will do this with a two- year zero-coupon bond and a perpetuity with an annual cash flow of $25,000 per contract. The interest rate is 9.0%. 7 pts

a. What should be the value today of your immunization portfolio?

b. What will be the weights of the two fixed-income assets in the immunization portfolio?

c. How many zero-coupon bonds will be in the portfolio? d. How many perpetuity contracts will be in the portfolio?

This is the full question. please mention what info is required because this all that's given and asked.