Question
1. Present the formula for the convexity of a bond. Build a spreadsheet to calculate the convexity of an 8% (3 year duration) coupon bond
1. Present the formula for the convexity of a bond. Build a spreadsheet to calculate the convexity of an 8% (3 year duration) coupon bond at the initial yield to maturity of 10% and a zero coupon bond (3 year duration) at a 10% interest rate for both
| Time until payment | Payment | Payment Discounted at 10% | Weight | Column 1 * Column 4 |
| 1 | ||||
| 2 | ||||
| 3 |
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Managerial Finance In A Canadian Setting
Authors: X. Lusztig, X. Schwab
4th Edition
0409806021, 1483106330, 9780409806021, 9781483106335
