Question 2b: What is the percentage change in the price of bond "(2" if its yield to maturity increases from 9% to 10%? Question 2:: What is the bonds modied duration? Question 33: If the band "D" has Duration 0! D -18.1809. what will be the 96 change in price if interest rates fall by I00 basis points? Question 1b: What is the percentage change in the price of bond "B" if its yield to maturity increases from 7% to 8%? Question 1c: From la and b, calculate the modified duration of the bond given the increase in r of 100 bp? Question 2a: What is the amount that the price of bond "C" will change if its yield to maturity increases from 9% to 10% :Consider the following four bonds that have different n ( years to maturity ) , different c ( coupon rates ) and different " ( market yields to maturity ) . For all bonds m = 1 . Face value of these bonds are all $1000 . Fill in the missing MD for each bond from the following solutions . MD : increase YTM MD : decrease YTM Bond Years to maturity Coupon YTM by 100bp by 100bp A 1 096 5% 0. 943 0. 962 5 6%6 4. 276 96 L C 10 10%6 9% 6.580 D 20 096 20. 448 NE _ like finding the slope of a line the tangent is the most accurate . For an infinitesimal change in t we might have more accuracy . Here we estimate duration with big swings in r . down Loo up and up 100 6p . Question 12: What is the amount that the price of bond " B " will change if it's yield to maturity increases by 100 bp from 7%6 to 8%6