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O e 14 Question 2 (1 point) A bond is currently selling for $85. The modified duration of the bond is 6 and the convexity

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O e 14 Question 2 (1 point) A bond is currently selling for $85. The modified duration of the bond is 6 and the convexity of the bond is 98. Using a second order approximation, estimate the new price of the bond resulting from a 150 basis point increase in the yield of the bond. a) 78.29 Ob) 93.59 Oc) 91.26 d) 78.78 e) 77.20 Question 3 (1 point) A particular asset has the following payment scheme: $100 at the end of years 1, 3, 7 - $400 at the end of years 2.6

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