Question
A newly issued bond has a maturity of 10 years and pays a 7% coupon rate ( with coupons coming once annually). The bond sell
A newly issued bond has a maturity of 10 years and pays a 7% coupon rate ( with coupons coming once annually). The bond sell at par:
A) What are the convexity and duration of the bond?
B) Find the actual price of the bond assuming that its yield-to-maturity immediately increases from 7% to 8% (with maturity still at 10 years) ?
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Gapenskis Cases In Healthcare Finance
Authors: George H. Pink
6th Edition
1567939651, 978-1567939651
