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A bond has Macaulay duration D ( i , ) = 5.8 and Macaulay convexity C ( i , ) = 1.2. Determine C (
A bond has Macaulay duration
D(i, ) = 5.8
and Macaulay convexity
C(i, ) = 1.2.
Determine
C(i, 4)
as a function of i.
The answer is: 2.65/(1+i)^.5
Please show work, NO Excel spreadsheets
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