Bond A has 1 years to maturity, 0% coupon rate and 5% YTM

Bond B has 5 years to maturity 6% coupon rate and 7% YTM

Bond C has 10 years to maturity 10% coupon rate and 9% YTM

Bond D has 20 years to maturity 0% coupon rate and 8% YTM

MD: increase YTM MD: decrease YTM by 100bp

by 100bp

Bond A 0.943 Bond A 0.962

Bond B ? Bond B 4.276

Bond C ? Bond C 6.580

Bond D ? Bond D 20.448

Fill in the question marks

And then:

1) a)What is the amount that the price of bond "B" will change if its yield to maturity increases by

100 bp from 7% to 8% :

1)b) What is the percentage change in the price of bond "B" if its yield to maturity increases from

7% to 8%?

1)c) From 1a and b, calculate the modified duration of the bond given the increase in r of 100 bp?

1) d) What is the amount that the price of bond "C" will change if its yield to maturity increases

from 9% to 10% :

1) e) What is the percentage change in the price of bond "C" if its yield to maturity increases from

9% to 10%?

1) f) What is the bonds modified duration?

2) If the bond "D" has Duration of D = 18.1809, what will be the % change in price if interest rates

fall by 100 basis points?