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2. Go to www.tipsinc.com/ficale/cale.tips. Choose the link for the general-purpose bond calculator. The calculator provides yield to maturity, modified duration, and bond convexity as the
2. Go to www.tipsinc.com/ficale/cale.tips. Choose the link for the general-purpose bond calculator. The calculator provides yield to maturity, modified duration, and bond convexity as the bonds' price changes. Experiment by trying different inputs. a. What happens to duration and convexity as coupon changes? b. What happens to duration and convexity as maturity inereases? c. What happens to duration and convexity as price increases (holding coupon fixed)?
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