... What is the appropriate market price of the bond?27.9 63 035 .1025,1 035 .125 035 .125 035 .125)2/1(Par2/ )2/1(2/)2/1(2/bond of 432 1221=+++=++++++=nkCkCkCPV 10Computing ... 7 percent. What is the appropriate market price of the bond using PVIFs?80.9 63$ 07.917$ 73. 46$)8 734 (.050,1$) 934 6(.50$)(050,1$)(50$bond of 2%,71%,7=+=+=+===== nknkPVIFPVIFPV 15Explaining ... are closely monitoredConsumer price indexProducer price indexOil pricesA weak dollar 33 Sensitivity of Bond Prices to Interest Rate Movements (cont’d)Duration (cont’d)Bond convexityModified...