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An annual bond with a 5-year maturity, 5% coupon and 5% ytm has a duration of 4.5460 and convexity of 23.9360. Compute the percent price
An annual bond with a 5-year maturity, 5% coupon and 5% ytm has a duration of 4.5460 and convexity of 23.9360. Compute the percent price change predicted by the duration with convexity rule if yields go up by 1%. 4.3295% 5% 4.2098% 4.2098%
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