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7. Use the following information for the questions. Assume 2 year annual coupon bond with coupon interest rate = 10%. Bond price is $ 919
7. Use the following information for the questions. Assume 2 year annual coupon bond with coupon interest rate = 10%. Bond price is $ 919 and face value =$ 1,000.
7-7-6) (15 Points) Fully discuss the convexity issue in bond investment and illustrate this issue by using a graph.
7. Use the following information for the questions. Assume 2 year annual coupon bond with coupon interest rate = 10%. Bond price is $ 919 and face value =$ 1,000.
7-7-6) (15 Points) Fully discuss the convexity issue in bond investment and illustrate this issue by using a graph.
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