Consider a four- year bond with a coupon rate of 7 percent and face value of $1,000.

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Consider a four- year bond with a coupon rate of 7 percent and face value of $1,000. Further assume the yield curve is flat, with a 9 percent yield to maturity. Assuming the yield curve remains flat, calculate the bond’s duration and convexity today and in two years.

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Debt Markets And Investments

ISBN: 9780190877439

1st Edition

Authors: H. Kent Baker, Greg Filbeck, Andrew C. Spieler

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