Question
Consider an annual coupon bond with yield to maturity (YTM) of 5%, modified duration of 9.72 years and convexity of 321.49. If YTM increases to
Consider an annual coupon bond with yield to maturity (YTM) of 5%, modified duration of 9.72 years and convexity of 321.49. If YTM increases to 6%, the convexity-adjusted percentage change in bond price is closest to
- -8.11%
- -9.72%
- -10.21%
- The question cannot be answered.
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Managing Finance
Authors: CMI Books
1st Edition
1781252181, 978-1781252185
