rises by 10 basis points, the bond's full price is expected to fall to 98.669. If the bond's YTM decreases by 10 basis points, the bond's full price is expected to increase to 98.782. What is the bond's approximate convexity? The following information relates to Questions 2 through 5 An Italian bank holds a large position in a 7.25% annual coupon payment corporate bond that matures on 4 April 2029. The bond's yield-to-maturity is 7.44% for settlement on 27 June 2014, stated as an effective annual rate. That settlement date is 83 days into the 360-day year using the 30/360 method of counting days 2. Calculate the full price of the bond per 100 of par value. Full price of the bond: 3. Calculate the approximate modified duration and approximate convexity using a 0.01% increase and decrease in the YTM Approximate modified duration Approximate convexity: 4. Calculate the estimated percentage price change using only the modified duration and using a 100 bp(1%) increase in the YTM Page 1 of 2 Due on Monday, April 17 5. Calculate the estimated convexity-adjusted percentage price change resulting from a 100 bp(1%) increase in the YTM