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Find out how sensitive a 4 - year bond is to changes in interest rates. This bond has a 5 percent annual coupon and is
Find out how sensitive a year bond is to changes in interest rates. This bond has a percent annual coupon and is currently yielding percent. If interest rates go up or down by basis points, estimate how much the bond's price is expected to change in To do this, calculate the bond's duration and convexity firstthey help measure how the bond reacts to interest rateshifls.
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