Question
Bond b has 7 years to maturity. Its ytm right now is 5%. If the bond has a Macaulay duration of 7.2% and convexity of
Bond b has 7 years to maturity. Its ytm right now is 5%. If the bond has a Macaulay duration of 7.2% and convexity of 25, what is the percentage change in bond price if interest rates suddenly decrease by 1.1% ? Assume annual compounding
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
