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A 100 par value 3 year bond pays annual coupons at a rate 7% coupon rate (with annual coupon payments). The current annual effective interest
A 100 par value 3 year bond pays annual coupons at a rate 7% coupon rate (with annual coupon payments). The current annual effective interest rate is 7%. (I) Calculate the duration the modified duration and the convexity of the bond. (II) If the interest rate change from 7% to 8% what is the percentage change in the price of the bond
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International Finance Theory And Policy
Authors: Paul Krugman, Maurice Obstfeld, Marc Melitz
12th Global Edition
1292417005, 978-1292417004
