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5. An investor buys a bond with 3 years to maturity. The bond pays a 5% coupon and has a yield to maturity of 6%.

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5. An investor buys a bond with 3 years to maturity. The bond pays a 5% coupon and has a yield to maturity of 6%. Interest on the bond is paid annually. The bond has a par value of R10000. The convexity of the bond is closest to: A. 10 B. 15.80 C. 20.71 D. 3.71 E. None of the above

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