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Duration and Convexity Question There is a 5.25% coupon 6-year note that pays out semiannually. It has a BEY of 3.65% and a par value

Duration and Convexity Question

There is a 5.25% coupon 6-year note that pays out semiannually. It has a BEY of 3.65% and a par value of $100.

1) Find the price of the note.

2) Find the modified Macaulay Duration of the note in years.

3) Find the convexity of the note in years squared.

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