Looking at the yield curve below, what is the YTM of a standard bond with a coupon rate of 2%? (in %, two decimals) t=1 1.00% 2 3 4 5 1.20% 1.40% 1.60% 1.80% Your Answer: Answer What is the duration of the bond Your Answer: 6 2.00% Your Answer: 7 8 9 10 2.20% 2.40% 2.60% 2.80% (round to 2 decimal places) Suppose all rates increase by 20 basis points (eg., the one year moves from 1.00% to 1.2%, the two year from 1.2 to 1.4, etc.). What is the new price of the bond using exact calculation? (round to 2 decimal places) Answer What is the new duration of the bond (after the rate increase)? (round to two decimal places)