Question
A 3 year maturity , 5.0% coupon bond is paying coupons annually. The face value of this bond is 1000 and the yield to maturity(YTM)
A 3 year maturity , 5.0% coupon bond is paying coupons annually. The face value of this bond is 1000 and the yield to maturity(YTM) is 7%. Assuming that the bond has a duration of 2.86 and a convexity of 5. Apply the duration convexity formula to find the percentage change in bond price following a 50 basis points decrease in the yield
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The Laymans Guide To Managing Your Investments
Authors: Thomas Dunleavy
1st Edition
979-8763592214
