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Find the convexity of a seven-year maturity, 6.5% coupon bond selling at a yield to maturity of 8.8%. The bond pays its coupons annually. (Do
Find the convexity of a seven-year maturity, 6.5% coupon bond selling at a yield to maturity of 8.8%. The bond pays its coupons annually. (Do not round intermediate calculations. Round your answer to 4 decimal places.)
This is my work, and my answer was incorrect. I used excel. Please help me!
Time | Cash Flow | PV(CF) | t+(t^2) | (t+t^2) * PV(CF) | |
1.00 | 65 | 59.74264706 | 2 | 119.4852941 | |
6.50% | 2.00 | 65 | 54.91052119 | 6 | 329.4631272 |
8.80% | 3.00 | 65 | 50.46922904 | 12 | 605.6307485 |
7.00 | 4.00 | 65 | 46.38715904 | 20 | 927.7431809 |
883.46 | 5.00 | 65 | 42.63525647 | 30 | 1279.057694 |
6.00 | 65 | 39.18681661 | 42 | 1645.846298 | |
7.00 | 1065 | 590.1295205 | 56 | 33047.25315 | |
SUM | 883.4611499 | 37954.47949 | |||
50.85496671 |
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