Treasury bond pays coupon 12% per year (semiannually). The maturity is 2 years, face value is 100. The yield maturity is 18%. Question 1. What is the price of bond?. what is the duration of bond? Question 2. What is convexity of bond? If interest rate rise by 0.5%, what will be the change of bond price?
Treasury bond pays coupon 12% per year (semiannually). The maturity is 2 years, face value is 100. The yield maturity is 18%. Question 1. What is the price of bond?. what is the duration of bond? Question 2. What is convexity of bond? If interest rate rise by 0.5%, what will be the change of bond price?
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 5Q: What do you have to do to the interest rate and years of maturity if a bond pricing problem tells...
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Treasury bond pays coupon 12% per year (semiannually). The maturity is 2 years, face value is 100. The yield maturity is 18%.
Question 1. What is the price of bond?. what is the duration of bond?
Question 2. What is convexity of bond? If interest rate rise by 0.5%, what will be the change of
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