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In October 2017 the yield on ten-year bonds issued by the government in a country was 2.1% (also the coupon rate). In November 2017, the
In October 2017 the yield on ten-year bonds issued by the government in a country was 2.1% (also the coupon rate). In November 2017, the yield was 1.6 %. Predict the effect of these changes in yield on the price of the ten-year government bonds, assume a face value, 1000. You will need to calculate the duration, modified duration, convexity and clearly explain your results
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