Hello great tutors kindly help me solve question 1a and 1b please

ANSWER ALL QUESTIONS AND SHOW ALL WORKINGS ON THE QUESTION SHEET IN THE SPACE PROVIDED QUESTION 1b [ 4+6+5 = 15 marks] Calculate the convexity for a three-year 5% coupon rate with a face value of $500,000 loan. What is the convexity of the same loan but with amortised payments? Use this information to determine the impact on the market value of the bond loan and the amortised loan if the entire yield curve shifted downward 50-basis points. What is the usefulness of convexity when duration is available as a measure of interest rate risk? What is the practical implication for the three-year loan in this example?ANSWER ALL QUESTIONS AND SHOW ALL WORKINGS ON THE QUESTION SHEET IN THE SPACE PROVIDED. QUESTION 1 a [10 marks] Use this balance sheet information to answer the following questions: Financial Institution (FI) Balance Sheet (Amount in millions, Duration in years) Assets Amount Duration Liabilities Amount Duration Cash 50 ? Core Deposits 750 1.25 yrs Treasury Bonds 350 1.95 yrs CDS 300 1.00 yrs Loans (special) 650 ? Euro CDs ? 0.75 yrs Loans (fixed) 450 3.25 yrs Equity 150 The bank has granted a special loan that has 3 years to maturity and has repayments of $357.875 million at the end of year 1, no payment at the end of year 2 and $357.875 payments at the end of year 3. The loan is trading at par and the yield to maturity is 5 percent per annum. Assuming a flat yield curve and a parallel shift of the entire yield curve of 50- basis points upward what is the impact on the FI's market value of equity