Question
1) Calculate the convexity of the following bond: Annual coupon bond rate: 8% (coupons are made semi-annually) YTM: 6% Maturity: 2 years Par value: $100
1) Calculate the convexity of the following bond:
Annual coupon bond rate: 8% (coupons are made semi-annually)
YTM: 6%
Maturity: 2 years
Par value: $100
2) When the bond's yield to maturity is decreased to 5%, what would be the bond dollar price change driven by convexity?
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. Mcguigan, William J. Kretlow
9th Edition
032416470X, 9780324164701
