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Please help me to answer this in details: Question 4: 20 marks YAPVC 3/4 BFN2054 PORTFOLIO MANAGEMENT MARCH 2021 (a) Consider a bond selling at

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Question 4: 20 marks YAPVC 3/4 BFN2054 PORTFOLIO MANAGEMENT MARCH 2021 (a) Consider a bond selling at par with modified duration of 22-years and convexity of 415. A two 2 percent decrease in yield would cause the price to increase by 44%, according to the duration rule. What would be the percentage price change according to the duration-with- convexity rule? (10 marks) (b) Compare and contrast a financial asset and real estate and provide an example of both assets. (10 marks)

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