Bond = Treasury

Pricing date = 22-Oct-20

Annual coupon rate = 3.50%

Number coupons per year =2

Maturity date = 22-Oct-38

Yield = 3.25%

Par value = 1,000,000GBP

1. Calculate the Price of your Bond if the Yield-To-Maturity decreases from that stated by 50 basis points; briefly explain the issues around your answer.

2. Calculate the Macauley Duration of your Bond at the given Yield-To-Maturity.