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asap A government bond that trades in the market has the following characteristics: Remaining life: 5 years Coupon rate: 4% Coupon frequency: Annual YTM: 5%
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A government bond that trades in the market has the following characteristics: Remaining life: 5 years Coupon rate: 4% Coupon frequency: Annual YTM: 5% Please answer the following questions. A. Estimate the bond price. B. Estimate the new bond prices in case yield increase by 1% or decrease by 1%, Discuss the results. C. The macaulay and modified duration D. The convexity E. The appropriate price change using duration and convexity, discuss the resultsStep by Step Solution
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