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please show work 2) IT is February 8, 2017. You have a $10,000 semi-annual bond with a coupon rate of 12 250% which matures May

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2) IT is February 8, 2017. You have a $10,000 semi-annual bond with a coupon rate of 12 250% which matures May 28, 2030. The bond is priced to yield 12.500%, the duration is 6.67 years, and the convexity is 61.48 years squared Using a duration estimate only, we predict that if market yields increase by 150 basis points then the price of this bond will decrease by The convexity correction is calculated as So the total decrease in price is predicted to be

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