Price information for four bonds and assuming that all four bonds are trading to yield 5% : Percentage price change based on an initial yield of 5% Answer the following question: 1) Compute the approximate percentage price change using duration for the two 8% coupon bonds assuming that the yield changes by 10 basis points. (0.5\%) 2) Compute the approximate percentage price change using duration for the two 8% coupon bonds assuming that the yield changes by 200-basis points. (0.5\%) 3) Based on Q1 and Q2, how does the estimated percentage price change compare to the actual percentage price change? (0.5\%) 4) For the two 25-year bonds, compute the estimated percentage price change using duration and convexity adjustment if yield changes by 200 basis points. How does the estimated percentage price change using duration and convexity adjustment compare to the actual percentage price change for a 200-basis point change in yield? (0.5\%) Price information for four bonds and assuming that all four bonds are trading to yield 5% : Percentage price change based on an initial yield of 5% Answer the following question: 1) Compute the approximate percentage price change using duration for the two 8% coupon bonds assuming that the yield changes by 10 basis points. (0.5\%) 2) Compute the approximate percentage price change using duration for the two 8% coupon bonds assuming that the yield changes by 200-basis points. (0.5\%) 3) Based on Q1 and Q2, how does the estimated percentage price change compare to the actual percentage price change? (0.5\%) 4) For the two 25-year bonds, compute the estimated percentage price change using duration and convexity adjustment if yield changes by 200 basis points. How does the estimated percentage price change using duration and convexity adjustment compare to the actual percentage price change for a 200-basis point change in yield? (0.5\%)