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1a. For a 10 year, semi-annual, $1,000 par value bond, with a coupon rate of 8% and YTM of 10%, compute the convexity 1b. For
1a. For a 10 year, semi-annual, $1,000 par value bond, with a coupon rate of 8% and YTM of 10%, compute the convexity
1b. For a 10 year, semi-annual, $1,000 par value bond, with a coupon rate of 8% and YTM of 10%, and the convexity computed in 1a, calculate the percentage change in the bond's price if the yield decreases by 10bps? What is the percentage change if the yield increases by 10 bps?
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