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Q1. Consider three bonds with the following features: Price Coupon rate (%) Maturity (years) YTM (%) Bond 1 100 5 2 5 Bond 2 100

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Q1. Consider three bonds with the following features: Price Coupon rate (%) Maturity (years) YTM (%) Bond 1 100 5 2 5 Bond 2 100 5 5 Bond 3 100 5 15 5 Coupon frequency and compounding frequency are assumed to be annual. Now we creat a bond portfolio with a unit quantity of each of these three bonds.Please show that the relative convexity is additive when the YTMs are the same

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