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A bond pays a 9.85% semi-annual coupon for 20 years and is priced at $1,025.65. Assume investors require a return of 9.56% on the bond.
A bond pays a 9.85% semi-annual coupon for 20 years and is priced at $1,025.65. Assume investors require a return of 9.56% on the bond. Calculate the corresponding price when the yield increases by the same amount and use it to find the approximate convexity
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