There is a bond which has a duration of 7 and a convexity of 40.

a) If the bond increases by 3 %, what will its price alter by?

b) If it decreases by 3%, what will the alteration of price be?

c) How do the results compare with the actual ones? Discuss without derivations. Are the true results symmetric in the 2 cases?

please answer all the questions and show work.