Using excel, plot graphs of the modified duration and convexity versus the note rate c (for 1% c 20%) of a 30 year, fully amortizing, fixed rate, par mortgage. Annotate cells to show work. Assume that the mortgage never prepays/curtails, nor does it ever default

1.Use the duration and convexity for c=5% in the previous question to plot the error in the percentage price change in the mortgage when yields change in the range of 0% to 3%, using

a.Duration only, and

b.Duration and convexity together.