Assume you have a bullet bond semi annual payment and maturity of 3 years,

a. If the coupon of the bond is 3% and yield 2% what is its price?

b. What are the key rate duration points of the bond with respect a 2-year point and a 2.5-year point?

c. Calculate the price the bond return directly if the 2-year point moves by 1%.

d. Calculate using the key rate duration method. Have you gotten a close result?