Consider a $10-$year $8\%($Semi$-$annually paid$)$ bond that is

traded at $7\%.$ Approximate its duration and convexity when

we expect yield to change by $50$ bps$.$

Approximate Duration$=6\mathrm{.}9368$ and Approximate Convexity $=$

$56\mathrm{.}0172$

Approximate Duration$=8\mathrm{.}7653$ and Approximate Convexity $=$

$48,9374$

Approximate Duration$=48,9374$ and Approximate Convexity $=$

$8\mathrm{.}7653$

Approximate Duration $=56\mathrm{.}0172$ and Approximate Convexity $=$

$6\mathrm{.}9368$