Question 13 2 pts Bond Math: Based on the information provided, what would the estimated gain/(loss) of the bond be for a rate shock of -100BP and +100BP rate change? Duration = 3.68 Convexity = -2.45 Current Book Value of Bond = $5 million Current (Base Case) Market Value of Bond = $6 million -100BP = $1,111,600, +100BP - $663,300 - 100BP - $952,325, +100BP - $453.925 OOOOO - 100BP = $952,850, +100BP - $455,635 -100BP - $1,135,300, +100BP - $325,700 - 100BP = $1,053,200, +100BP - $654,400 Question 14 2 pts The biggest advantage of the US Treasury sector is that it offers the highest yield of investment alternatives because of the risk free rate of return. True MacBook Air