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Compute the approximate convexity measure for both bonds A (use 10 bsp as the change in interest rate) Hint: calculate the price of the bond

Compute the approximate convexity measure for both bonds A (use 10 bsp as the change in interest rate)

Hint: calculate the price of the bond when interest rate increase by 10 bsp and decrease by 10 bsp. Then plug in the formula we have in class.

Round to 4 decimal places.
Consider the following information and assume that both bonds pay interest semi-annually, so that below are semiannual bond equivalent yields. A Coupon 8 YTM 8 Maturity 2 Par 100 Price 100

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