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Problem 3 (20 points) The yield of a semiannual coupon bond with 5% coupon rate and 30 months to maturity is 10%. (a) What are
Problem 3 (20 points) The yield of a semiannual coupon bond with 5% coupon rate and 30 months to maturity is 10%. (a) What are the price, duration and convexity of the bond? (b) Repeat a) when the yield changes from 10% to 5%. (No financial formulas using a financial calculator or computer are allowed. Show your work.) Problem 3 (20 points) The yield of a semiannual coupon bond with 5% coupon rate and 30 months to maturity is 10%. (a) What are the price, duration and convexity of the bond? (b) Repeat a) when the yield changes from 10% to 5%. (No financial formulas using a financial calculator or computer are allowed. Show your work.)
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