Suppose we have a 7-year, 5% semi-annual bond that matures on September 15, 2020, which was purchased on January 3, 2014. The coupon payments are made on March 15 and September 15 each year. Here is some relevant information for this bond. Initial YTM = 5% PV. = $101.492586 PV. = $101.2110 PV = $101.7750 Ayield = 0.0005 Approximate Modified Duration = 5.55278 1. Calculate the approximate convexity. 2. Calculate the estimated convexity-adjusted percentage price change (with duration effect) resulting from a 100 basis point increase in the yield-to-maturity. 3. Compare the estimated percentage price change with the actual change, assuming the yield-to- maturity jumps to 6% on the settlement date. Explain your calculations