1. Assuming each bond pays interest semiannually, calculate each measure for the following bond:

	Bond O
Price	$1018.15
Par Value	$1000
Years to Maturity	2
Coupon	9%
Yield to Maturity	8%

1. Price Value of a basis point
2. Macaulay Duration
3. Modified Duration
4. Use the short cut method to approximate duration assuming a 10-basis point change in yields.
5. Use the short cut method to approximate convexity assuming a 10-basis point change in yields.