Question
You have a 25-year maturity, 10.7% coupon, 10.7% yield bond with a duration of 10 years and a convexity of 136.2. If the interest rate
| You have a 25-year maturity, 10.7% coupon, 10.7% yield bond with a duration of 10 years and a convexity of 136.2. If the interest rate were to fall 132 basis points, your predicted new price for the bond (including convexity) is _________. |
| $1,107.33 | |
| $1,131.10 | |
| $1,119.20 | |
| $1,090.33 PLEASE EXPLAIN*** |
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Military Finances Personal Money Management For Service Members Veterans And Their Families
Authors: Cheryl Lawhorne-Scott, Don Philpott
1st Edition
144222214X, 978-1442222144
