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A $100 par value bond with 2% annual coupons and maturing at $113 in 3 years. Given an effective annual interest rate of 3%, compute

A $100 par value bond with 2% annual coupons and maturing at $113 in 3 years. Given an effective annual interest rate of 3%, compute the convexity of this bond.

Possible Answers A 8.27 B 8.77 C 11.05 D 11.38 E 11.72

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