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Consider a 5-year, 6.6% coupon bond that is priced to yield 7.2% with bimonthly payments(i.e., once every two months). Calculate duration, modified duration, and convexity

Consider a 5-year, 6.6% coupon bond that is priced to yield 7.2% with bimonthly payments(i.e., once every two months). Calculate duration, modified duration, and convexity of this5-year bond! Then.



Calculate the predicted bond price (predict with both modified durationand convexity), assuming interest rates rise by 180 bps.

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