Question
Up and Coming Yoga has an outstanding bond issue that is currently selling for $945.55 The bond pays a semi-annual coupon at an annual rate
Up and Coming Yoga has an outstanding bond issue that is currently selling for $945.55 The bond pays a semi-annual coupon at an annual rate of 8.55% and matures in 19 years. Using approximate formulas, what is the modified duration and convexity of this bond? Using duration and convexity measures you computed, calculate the change in price of this bond if the yield goes up by 30 basis points.
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Pricing Analytics Models And Advanced Quantitative Techniques For Product Pricing
Authors: Walter R. Paczkowski
1st Edition
1138623938, 9781138623934
