Estimate the 2-year, 5-year, and 10-year key rate duration of a 20-year bond carrying a coupon of 13.8 percent on face value $100 paid semi-annually. The given term structure starts with 9.4 percent spot rate of interest at time zero and rises at a rate of 0.002 (.2%) per half year thereafter. Take a 20 basis point (.002) move in each key interest rate to calculate the key rate durations by the method done in class and given in textbook. Report answers for the following:

1. Current fair price of the bond with the given term structure.

2. Price change needed to calculate 2-year key rate duration.

3. Price change needed to calculate 5-year key rate duration.

4. Price change needed to calculate 10-year key rate duration.

5. 2-year key rate duration.

6. 5-year key rate duration.

7. 10-year key rate duration.