A semiannual pay noncallable 1000 par value 6 coupon 8-year


A semiannual pay, noncallable, $1000 par value, 6% coupon, 8-year bond is currently priced to yield 8% per year. Calculate the price of the bond if yield increases by 50 bps. Calculate the price of the bond if yield decreases by 50 bps. Now calculate the effective duration of this bond and describe what effective duration means. Calculate the effective convexity and describe what it means?

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Financial Management: A semiannual pay noncallable 1000 par value 6 coupon 8-year
Reference No:- TGS01423885

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