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A newly issued Euro annual-pay coupon bond has the following characteristics: Trading at par (100 CHF). Time to maturity of 15 years Coupon rate of
A newly issued Euro annual-pay coupon bond has the following characteristics: Trading at par (100 CHF). Time to maturity of 15 years Coupon rate of 9.5% Based on an 85-basis-point increase and decrease in yield: a). Compute the bonds Effective or Modified Duration b). If Convexity is 56.75 and the Current price of Bond is CHF 93.66, Compute the new price of the Bond for the 85-basis points increase in Yield of the Bond
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
