Question
Below are details of a semiannual bond. Par value = 1000; Maturity 4 years; Market rate if interest (yield to Maturity) = 11% per annum;
Below are details of a semiannual bond.
Par value = 1000; Maturity 4 years; Market rate if interest (yield to Maturity) = 11% per annum; Coupon rate = 8% per year paid semiannually.
Which one is a better measure of predicting price change--duration or convexity-- and why?
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Handbook Of Blockchain Digital Finance And Inclusion
Authors: David Lee, Robert H. Deng
1st Edition
0128104414, 978-0128104415
