Walter has invested in a corporate bond paying semi-annual coupons with a coupon rate of 4.2% and maturity of 2.5 years from now. The bond's par is $1000 and the yield to maturity is 3.6%. The bond's price is_____ $, its duration is _____ years, its modified duration is _____ and its convexity is _____.

If interest rates goes down by 0.75%, according to the duration we can approximate the bond's price change as _____%.

If we incorporate convexity as well, the expected change in the bond's price is _____%.

The duration of a portfolio consisting of 500 of the corporate bonds described above and of 300 zero-couponT-bonds currently trading for $986 with an 8-year maturity is _____ years.