Question
A 5% non-callable bond with 3 remaining annual coupons will mature at $100 par in 3 years. Find the effective duration and effective convexity of
A 5% non-callable bond with 3 remaining annual coupons will mature at $100 par in 3 years. Find the effective duration and effective convexity of the bond at a current interest rate of 5%, using the prices at interest rates that are 12% on either side of 5%.
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Financial Accounting The Impact On Decision Makers
Authors: Gary A Porter, Curtis L Norton
8th Edition
1111534861, 9781111534868
