1. Calculate the total percentage price change (duration and convexity) to a 65 point decrease in interest rates to a bond with a 6-1/4 coupon, 10-years remaining to maturity, and an asking quote of 110.7811 (decimal, not 32nds).
2. Calculate the effective convexity 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).
3. How does the Tax Increment Financing (TIF) property tax increment work? Describe in DETAIL how is the increment generated. (4-5 sentences)