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A $4,000 8% six year bond has semiannual coupons and redemption amount of $4,444. It is purchased to provide the investor with 6% annual effective
A $4,000 8% six year bond has semiannual coupons and redemption amount of $4,444. It is purchased to provide the investor with 6% annual effective yield. Find the Macaulay convexities C ( 5 %, ) , C ( 6 %, ) , C ( 7 % , ) as well as the modified convexity C ( 6 % , 2 ).
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