Bond ABC has maturity of 4, Macaulay duration of 3.4483, coupon rate of 10%, and yield to maturity of 5%. The bond pays interest semi-annually. Calculate the duration-predicted percentage price change of bond ABC if yields increase by 80 bps.

None of the provided answers

-2.76%

-2.69%

-5.38%

-2.63%

A bond is currently trading for 71.9057. If the bond's yield to maturity (YTM) falls by 30 bps, the bond's price is expected to rise to 72.7707. If the bond's YMT rises by 30 bps, the bond's price is expected to fall to 71.0532. The bond's approximate convexity is closest to:

77.26

0.19

3.98

19.32

None of the provided answers

Bond A has duration of 3.4464 years and maturity of 4 years. Bond B has duration of 7.5739 years and maturity of 12 years. Both bonds have a yield to maturity of 9% and are currently priced at par. Your intended holding period is 6 years and you want to form an immunized portfolio of A and B. If you have $2000 to invest, how much should be invested in A?

$1500.00

$762.63

$38.13

None of the provided answers