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Calculate the effective duration of a bond

Question 1: Calculate the effective duration of a bond to a 100 basis point change in interest rates with a 6-1/4 coupon, 10-years remaining to maturity, and an asking quote of 110.7811 (decimal, not 32nds).

Question 2: Calculate the effective convexity to a 100 basis point change of the bond in Question above

Question 3: Calculate the total percentage price change (duration and convexity) to a 65 basis point decrease in interest rates for the bond in Questions above.

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## Q : Calculating the issue price of the bonds

Calculate the issue price of the bonds. Prepare the amortization table for 2007, assuming that amortization is recorded on interest payment dates.