Question 5 Not yet answered Marked out of 10000 Assume that the following bond is under analysis. It has a 8-year malurily bond with an annual coupon rate of 6% and coupons are paid semi annually. Its yield to maturity is 6% and its face value is 1.000. 1. Use Bobcock's formula to find the value of the Macaulay duration in years, (25 marks) 2. Use the value of the duration found to estimate the price change resulting from an increase of 200 basis point in the yield (17 marks) F Fog quotion 3. Use the value computed in 1. to find the dollar duration of the bond (16 marks) 4. If the convexity measure for that bond is 40 in half years, compute the convexity adjustment (13 marks) Use it together with the duration obtained above to compute the price change resulting from on increase of 200 basis point in the yield. (12 marks) 5. What is the actual % price change if the yield increases to 8% (17 marks)