You purchased a semi annual bond with a coupon of 15 and a modified duration of 11 568456, at a price of $115 2365 Soon after you purchased the bond, the yields increase by 1 25 and your bond's price drops to $99 9563 What part of the new price is solely due to convexity a) 1 383655 b) 2 767309 c) 15 424806 d) 0 043700 e) 1 427355

Question

You purchased a semi annual bond with a coupon of 15  and a modified duration of 11 568456, at a price of $115 2365  Soon after you purchased the bond, the yields increase by 1 25  and your bond's price drops to $99 9563  What part of the new price is solely due to convexity  a) 1 383655 b) 2 767309 c) 15 424806 d) 0 043700 e) 1 427355

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Question

You purchased a semi-annual bond with a coupon of 15% and a modified duration of 11.568456, at a price of $115.2365. Soon after you purchased

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a)	1.383655

b)	2.767309

c)	15.424806

d)	0.043700

e)	1.427355