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Please solve below question: Convexity is the measurement of price curvature of a bond in the neighborhood of the bond's current market rate and price

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Please solve below question:

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Convexity is the measurement of "price curvature" of a bond "in the neighborhood" of the bond's current market rate and price point: Convexity = V_ + V- - 2Vo 2Vo(Ay)2 where Ay = 0.50% Y- = YO - Ay corresponding to V- = price of bond @ Y- YO = current market rate of bond corresponding to VO = current price of bond Y+ = YO+ Ay corresponding to V+ = price of bond @ Y+ Thus the measurement is based on "neighborhood" bond prices of V- and V+ which corresponds to change in neighborhood yields -- YO + 0.5% - i.e. Y- and Y+ from its current bond market rate YO. Convex Funds, a bond investment company, underwrote a set of bonds with the following characteristics: C/Y Maturity (yrs CouponRate MktRate Face feature 2 30 3.00% 3.00% 1,000 noncallable Using the above formula and data, calculate this bond's Convexity by calculating and filling in the template: fill in these . . . calculate these bond prices Use above formula to calculate in space below. Ay PS: leave them in positive numbers Y - V- Yo VO Convexity = Y+ V+

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