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12.A $100 000 bond has a term to maturity of one year, with half-yearly coupons set at 12% p.a. Calculate the convexity of the bond

12.A $100 000 bond has a term to maturity of one year, with half-yearly coupons set at 12% p.a. Calculate the convexity of the bond in periods if the yield is 9%.

(1 Point)

A. 2.576

B. 2.888

C. 3.227

D. 4.672

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