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(b) Answer the below questions for bonds A (pay interest semiannually). Coupon Yield to maturity Maturity (years) Par Price Bond A 12% 10% 2 RM100.00

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(b) Answer the below questions for bonds A (pay interest semiannually). Coupon Yield to maturity Maturity (years) Par Price Bond A 12% 10% 2 RM100.00 RM103.545951 (i) Compute the approximate duration of Bond A using the shortcut formula by changing yields by 100-basis points. (5 marks) Compute the approximate convexity measure of Bond A using the shortcut formula by changing yields by 100-basis points. (5 marks) (ii)

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