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Laurie bought a 5-year coupon bond with a redemption value of 1,000 paid at the end of the 5 th year. Coupons are paid at
Laurie bought a 5-year coupon bond with a redemption value of 1,000 paid at the end of the 5th year. Coupons are paid at the end of each year. The bond has an annual yield rate of 6%.
The bond has a modified duration of 4.045 and a modified convexity of 21.664.
Calculate the Macaulay convexity of the bond.
A. 18.4
B. 19.3
C. 20..1
D. 24.3
E. 23.0
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