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The following information relates to a bond issued by ABC Limited Market price Coupon rate (per annum) Maturity (years) Payment frequency Yield to maturity Macaulay's

The following information relates to a bond issued by ABC Limited Market price Coupon rate (per annum) Maturity (years) Payment frequency Yield to maturity Macaulay's duration Modified duration Convexity $95.90 4% 3 Semi-annual (in arrears) 5.50% 2.853 2.777 9.299 Use the provided duration and convexity measures to estimate the percentage change in bond price if the yield to maturity decreased by 1%

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