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Question IV a) What is the duration of a five-year, $1,000 Treasury bond with a 10 percent annual coupon selling at par (yield to maturity
Question IV a) What is the duration of a five-year, $1,000 Treasury bond with a 10 percent annual coupon selling at par (yield to maturity is 10)? Show your work b) what is the convexity of the bond? c) Use both the duration and convexity to approximate the change in bond price if interest rates increase by 3% Step by Step Solution
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School Finance And Business Management Optimizing Fiscal Facility And Human Resources
Authors: Craig A. Schilling, Daniel R. Tomal
2nd Edition
1475844026, 978-1475844023
