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Correct answer is $143.79 but unsure about how to get there A 20-year maturity bond making annual coupon payments with a coupon rate of 8%

image text in transcribedCorrect answer is $143.79 but unsure about how to get there

A 20-year maturity bond making annual coupon payments with a coupon rate of 8% has duration of 11.495 years and convexity of 170.37. The bond currently sells at a yield to maturity of 6%. If the market rate drops by 100 basis points, what dollar price change would be predicted by the duration-with-convexity rule

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