4 year bond par

coupon 6%
Interest 6%
Year Cash Flow PV CF
1 2 3
1 60 0.943396
2 60 0.889996
3 60 0.839619
4 1060 0.792094
Total

Modified duration

1step Convexity 1/(1.06)^2

0.89
2 step 15869.097
3 step 15.869097
 1000

3*2 PV % 1*5 t^2+t 4*7

4 5 6 7 8
56.603774 0.056604 0.056604 2 113.2075
53.399786 0.0534 0.1068 6 320.3987
50.377157 0.050377 0.151131 12 604.5259
839.61928 0.839619 3.358477 20 16792.39
1000 3.67301 17830.52

3.563107

1.1236 0.889996