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(1) Calculate the convexity of the following bond: Annual coupon rate: 8% (coupons are made semi-annually); YTM: 6%; Maturity: 2 years Par value: $100 (2)

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(1) Calculate the convexity of the following bond: Annual coupon rate: 8% (coupons are made semi-annually); YTM: 6%; Maturity: 2 years Par value: $100 (2) Based on the formula 4P = {convexity. (Ay), explain when convexity has a big influence on bond price

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