Assume that the yield curve is flat at 5.9%. The bond has 3 years to maturity, and pays coupons annually. The face value of the bond is $100, and the bond pays a 5.63% coupon rate. Report two decimal places for all your answers.

Question 9 5/6 points (graded) Assume that the yield curve is flat at 5.9%. The bond has 3 years to maturity, and pays coupons annually. The face value of the bond is $100, and the bond pays a 5.63% coupon rate. Report two decimal places for all your answers. (a) Compute the price of the bond. 99.28 (b) Compute the modified duration of the bond. 2.68 (c) Compute the convexity of the bond by applying the formula: 11 dB CX = 2 B dy2 where B is the bond price and y is the bond yield. 9.95