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A four-year bond has a coupon rate of 5% and pays its coupons annually. It has a face value of 200. The yield to maturity

  1. A four-year bond has a coupon rate of 5% and pays its coupons annually. It has a face value of 200. The yield to maturity is 4% per year.

  1. Calculate the annual discount factors (do not use continuous compounding or semi-annual compounding)
  2. Calculate the coupon payments and final payment.
  3. Calculate the price of the bond.
  4. Calculate the duration of the bond.
  5. Calculate the convexity of the bond.

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