Bonds: YTM, duration, and convexity

How do I calculate YTM? I need to calculate it for this sort of bond:
A 10yr $1000 bond w/ a 5% annual coupon is selling for $784.36. The current prime rate is 8.25% (I'm using the prime rate to calculate the
bond's clean price). It's Macauly duration is 7.82yrs. It's current yield is 6.37%.
How would I calculate it's YTM and it's convexity? What does duration and convexity actually mean? Thanks!!!! Also, why is duration in years instead of percent?
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DarkProtoman wrote:

Don't you mean "Macaulay"?
If you need help with your exercises, ask your teacher, that's what he's paid for. Of course, it would help if you paid more attention in class.

Duration comes from the Latin. Not from the adjective meaning "hard" (as in "not soft" and "durum wheat semolina", not as in "difficult"), but from the verb meaning "to last"; the word "during" has the same root.
So duration means how long something lasts. Why would you want to measure that in percent?
There is no apostrophe in "its" unless you want it to mean "it is".
GIYF: www.riskglossary.com/link/duration_and_convexity.htm
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Ronald Raygun wrote:

FIY, this is not homework. I'm buying bonds and I need to know this stuff. And, why wouldn't duration be measured in percent, it's the amount a bond's price would change if there was a 1% change in yield. And why, when you multiply the coupon pmt by the duration, you get something less than the price, b/c isn't duration the amount of time it takes for the bond's price to be repaid?
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Better post your question in alt.math.

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