You are the fund Manager and you have decided to invest in a Bond with a 10 percent coupon and a 4- year maturity currently priced at par with interest paid annually. Your interest rate outlook is that rates will continue to fall and so you need to know whether this particular bond is suited for your portfolio. a) Calculate the duration of this bond b) Why does the coupon rate affect the volatility of bond price? c) What are three reasons that duration is important in bond analysis and management'? d) You decided to purchase the bond for your portfolio, but now interest rates have risen by 100 basis points, what is the modified duration of the Bond. Explain. e) How can the duration and convexity of this bond assist you the portfolio manager in assessing the interest-rate risk inherent in your bond portfolio? What weakness of modified duration does convexity correct?