Answer the below questions for bonds A and B. Bond A Bond B Coupon 8% 9% Yield to maturity 8% 8% Maturity (years) 2 5 Par $100.00 $100.00 Price $100.00 $104.055

a. Compute the Macaulay durations for the two bonds.

b. Compute the modified duration for the two bonds

c. Compute the approximate duration for bonds A and B using the shortcut formula by changing yields by 20 basis points

d. Compute the approximate convexity measure for both bonds A and B.