Go to www.tipsinc.com/ficalc/calc.tips. Choose the link for the general-purpose bond calculator. The calculator provides yield to maturity,

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Go to www.tipsinc.com/ficalc/calc.tips. Choose the link for the general-purpose bond calculator. The calculator provides yield to maturity, modified duration, and bond convexity as the bonds’ price changes. Experiment by trying different inputs.

a. What happens to duration and convexity as coupon changes?

b. What happens to duration and convexity as maturity increases?

c. What happens to duration and convexity as price increases (holding coupon fixed)?

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ISE Essentials Of Investments

ISBN: 9781265450090

12th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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Question Posted: Nov 18, 2023 11:30 PM

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Go to www.tipsinc.com/ficalc/calc.tips. Choose the link for the general-purpose bond calculator. The calculator provides yield to maturity,

Question:

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ISE Essentials Of Investments

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