Question
Consider two semi-annual coupon bonds with a face value of 100 and current yield of 10% with the following properties: Bond Maturity Coupon B 1
Consider two semi-annual coupon bonds with a face value of 100 and current yield of 10% with the following properties:
| Bond | Maturity | Coupon |
| B1 | 3 years | 12% |
| B2 | 3.5 years | 30.3524% |
(i) Compute the durations and convexities of the two bonds
(ii) By computing the prices, determine the number of B1 that has the same value as 1 unit of B2
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The Dark Side Of Valuation
Authors: Aswath Damodaran
2nd Edition
0137126891, 9780137126897
