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Question 2 Find the number of units, q and 92, needed to achieve duration and...

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Question 2 Find the number of units, q and 92, needed to achieve duration and convexity hedging of the following portfolio: price is 32863.5, yield to maturity is 5.143%, with modified duration of 6.76 and convexity of 85.329. You also have access to the following instruments: Instrument 1 Instrument 2 Price 97.962 108.039 Yield 5.232% 4.097% MD 8.813 2.704 Conv 99.081 10.168 Question 2 Find the number of units, q and 92, needed to achieve duration and convexity hedging of the following portfolio: price is 32863.5, yield to maturity is 5.143%, with modified duration of 6.76 and convexity of 85.329. You also have access to the following instruments: Instrument 1 Instrument 2 Price 97.962 108.039 Yield 5.232% 4.097% MD 8.813 2.704 Conv 99.081 10.168

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