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A bond with an embedded put option has a modified duration of 8, an effective duration of 7 and a convexity of 64.5. If interest
A bond with an embedded put option has a modified duration of 8, an effective duration of 7 and a convexity of 64.5. If interest rates rise by 25 basis points, the bonds price will change by approximately: Question 11Answer a. 2.03%. b. 1.71%. c. 1.96% d. 2.28%
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The Routledge Handbook Of Critical Finance Studies
Authors: Christian Borch, Robert Wosnitzer
1st Edition
1138079812, 978-1138079816
