b) For a semi-annual coupon bond with 4 years to maturity, an annual coupon of 8% (paid 4% each six- month period), and a current yield to maturity of 3.5% (annual),

1. What is the Macaulay duration of this bond?

2. What is the modified duration of this bond?

3. An investor owns $50M (market value or price NOT face or par) of these bonds, what is the Dollar Duration of this position (measured in terms of a 1bp change NOT the usual 100bps)?

4. What is the price elasticity of this bond for a 1bp increase in yield to maturity?

WILL RATE THUMBS UP!!