Question
Example A. Consider a 3-year, $50 annual coupon bond with a par value of $1,000 and a current market price of $1,000. 1. Find the
Example A. Consider a 3-year, $50 annual coupon bond with a par value of $1,000 and a current market price of $1,000. 1. Find the duration of the bond. 2. Calculate the percentage change in the bond price using the bond's duration if yields immediately increase to 10%. 3. Find the convexity of the bond.
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Financial Management Principles And Applications
Authors: Arthur J. Keown, J. William Petty, John D. Martin, Jr. Scott, David F.
10th Edition
0131450654, 9780131450653
