Yields and Prices.

(a) Define the following yield concepts: Redemption yield Par yield Yield to call Yield to worst

(b) Can a zero and an otherwise identical, maturity-matched level-coupon bond ever have the same duration?

(c) A 3M T-bill currently sells for 98:08 (what does this quotation mean?). Calculate its bond equivalent yield.

(d) Calculate the discount yield of the preceding 3M T-bill currently selling for 98:08.

(e) What does convexity measure and how is it used in the assessment of interest rate risk?