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PLEASE SHOW SOLUTIONS & Answers. Thank you! Consider a five-year bond with a yield of 11% (continuously compounded) pays an 8% coupon at the end

image text in transcribedPLEASE SHOW SOLUTIONS & Answers. Thank you!
Consider a five-year bond with a yield of 11% (continuously compounded) pays an 8% coupon at the end of each year. The face value is $100 1. What is the bond's price? 2. What is the bond's duration and convexity? 3. Use the duration to calculate the effect on the bond's price of a 2% decrease in its yield 4. Use both the duration and the convexity to calculate the effect on the bond's price of a 2% decrease in its yield

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