Lucky Star Inc. just issued a bond with the following characteristics:

Maturity = 3 years

Coupon rate = 8%

Face value = $1,000

YTM = 10%

Interest is paid annually and the bond is noncallable.

1. Calculate the bond's Macaulay duration Round "Present value" to 2 decimal places and "Duration" to 4 decimal place.
2. Calculate the bond's modified duration
3. Assuming the bond's YTM goes from 10% to 9.5%, calculate an estimate of the price change without considering convexity.
4. Calculate the convexity of the bond.