Question 2 (1 point) A bond is currently priced at $839.24. A 150 basis point increase to the yield prices the bond at $704.04. A 150 basis point decrease to the yield prices the bond at $1022.41. Using a second-order approximation, calculate the estimated price of the bond for a 200 basis point increase. a) 649.39 b) 669.63 O c) 708.22 d) 678.71 e) 658.27 Question 3 (1 point) A 3-payment, 5-year-deferred annuity immediate has the following spot and forward rates: Spot Spot Rate Forward Rate 4% 9% S5 S6 SZ Sg Forward fs fo fa fe fo 7% 5% SO 6% Calculate the present value at time 0 of this annuity. a) 1.9057 b) 1.9973 c) 1.9456 d) 1.9239 1.9681 Question 4 (1 point) Calculate the modified duration of a 30-payment annuity immediate with $1 payments and annual effective interest rate i = 0.05. a) 10.8563 b) 12.5675 c) 13.1959 d) 11.3992 e) 11.9691 Question 2 (1 point) A bond is currently priced at $839.24. A 150 basis point increase to the yield prices the bond at $704.04. A 150 basis point decrease to the yield prices the bond at $1022.41. Using a second-order approximation, calculate the estimated price of the bond for a 200 basis point increase. a) 649.39 b) 669.63 O c) 708.22 d) 678.71 e) 658.27 Question 3 (1 point) A 3-payment, 5-year-deferred annuity immediate has the following spot and forward rates: Spot Spot Rate Forward Rate 4% 9% S5 S6 SZ Sg Forward fs fo fa fe fo 7% 5% SO 6% Calculate the present value at time 0 of this annuity. a) 1.9057 b) 1.9973 c) 1.9456 d) 1.9239 1.9681 Question 4 (1 point) Calculate the modified duration of a 30-payment annuity immediate with $1 payments and annual effective interest rate i = 0.05. a) 10.8563 b) 12.5675 c) 13.1959 d) 11.3992 e) 11.9691