Question
Given the Macaulay duration for a semiannual 7.5% bond with 5 years to maturity and a yield of 6.75% is equal to 4.2740 years and
Given the Macaulay duration for a semiannual 7.5% bond with 5 years to maturity and a yield of 6.75% is equal to 4.2740 years and the convexity is equal to 20.80, if interest rates fall by 0.5% what is the change in the bond price based on duration and convexity?
+4.186%
+2.093%
-4.186%
-2.093%
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Trading From Your Gut How To Use Right Brain Instinct And Left Brain Smarts To Become A Master Trader
Authors: Curtis Faith
1st Edition
0137047681,0137051689
