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Assume a four-year maturity float-rate bond. Par value is $1,000. Its discount rate is LIBOR+3%. The discount rate for fixed cash flows is 5%. Its

Assume a four-year maturity float-rate bond. Par value is $1,000. Its discount rate is LIBOR+3%. The discount rate for fixed cash flows is 5%. Its coupon rate is LIBOR+1%. a. What is the price of this floater? b. What is the modified duration of this floater? c. What is the convexity of this floater?

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To solve these questions well follow these steps a Calculate the price of the floater b Calculate the modified duration of the floater c Calculate the convexity of the floater Lets begin a Price of th... blur-text-image

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