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(assume that each bond pays interest semiannually): Bond A Bond B Coupon 8% 9% Yield to maturity 8% 8% Maturity (years) 2 5 Par $100.00
(assume that each bond pays interest semiannually):
| Bond A | Bond B |
Coupon | 8% | 9% |
Yield to maturity | 8% | 8% |
Maturity (years) | 2 | 5 |
Par | $100.00 | $100.00 |
Price | $100.00 | $104.055 |
- Compute the convexity measure for both bonds A and B.
- Compute the approximate convexity measure for bonds A and B using the shortcut formula by changing yields by 20 basis points and compare your answers to the convexity measure calculated in part (a).
please show the calculation and the work so I can compare my answers
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