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Question 2. A. What is the price of a 4-year 5% semiannual coupon bond that is currently trading with a yield to maturity (YTM) of

Question 2. A. What is the price of a 4-year 5% semiannual coupon bond that is currently trading with a yield to maturity (YTM) of 6%? [4 marks] B. Calculate the approximate modified duration of the bond above. [4 marks] C. If interest rates were to increase by 75 basis points (bps), what will its new price be? [2 marks]

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