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Consider a $100 par value coupon-bearing bond with a 5% coupon rate and 5 -year...

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Finance

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Consider a $100 par value coupon-bearing bond with a 5% coupon rate and 5 -year maturity. The prevailing risk-frce rate during the life of the bond is 7% per annum with continuous compounding. a) Calculate the price of the bond deccribed above (Enter numeric value only, no dollar sign or comma. Keep 2 decimal places) b) Calculate the duration of the bond. (Enter numeric value only, no dollar sign or comma. Kcep 2 decimal places) c) Calculate the comvexity of the bond (Enter numeric value only. no dollar sign or comma. Keep 2 decimal places) d) Use the approxmation given by duration and convexity, to calculate the peticem 13 ge change in bond price given a 50 basis points increase in yield. (Express in %. Keep 2 decimal places es. 1.23% )

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