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An 4% annual coupon bond with (face value = 6,000) currently trades at par. Its...

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Finance

An 4% annual coupon bond with (face value = 6,000) currently trades at par. Its Macaulay duration is 5.94 in years and its convexity is 67.03 in years.

Suppose yield goes from 4.67% to 4.03% one day. Calculate the approximate dollar change in price using both duration and convexity. If the answer is a decrease, then include the negative in your answer.

Assume annual compounding. Round your answer to 2 decimal places.

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