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Use the information in the following table to complete the questions in this section. All bonds have a Face Value of $1000. Assume semi-annual compounding.

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Use the information in the following table to complete the questions in this section. All bonds have a Face Value of $1000. Assume semi-annual compounding. 2. Calculate the exact price change for each bond if the yield curve experiences a parallel shift and: a. increases by 1%,3%,5%,7%, and 9% b. decreases by 1%,3%,5%,7%, and 9% Show detailed workings. ( 1 marks) 3. Calculate the estimated price change using only Duration for each bond if the yield curve experiences a parallel shift and: a. increases by 1%,3%,5%,7%, and 9% b. decreases by 1%,3%,5%,7%, and 9% Show detailed workings. ( 1 marks) 4. Calculate the estimated price change using Duration and Convexity for each bond if the yield curve experiences a parallel shift and: a. increases by 1%,3%,5%,7%, and 9% b. decreases by 1%,3%,5%,7%, and 9%

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