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Please show work 3) It is July 22, 2017. You have a $10,000 semi-annual bond with a coupon rate of 11.625% which matures September 15,

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3) It is July 22, 2017. You have a $10,000 semi-annual bond with a coupon rate of 11.625% which matures September 15, 2034. The bond is priced to yield 6.750%, the duration is 9.12 years, and the convexity is 115.65 years squared Using a duration estimate only, we predict that if market yields decrease by 250 basis points then the price of this bond will increase by The convexity correction is calculated as So the total increase in price is predicted to be

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