Calculate the approximate duration and approximate convexity, Finance Basics

+44 141 628 6080
[email protected]

Calculate the approximate duration and approximate convexity

Problem

A 20-year 7% coupon bond is trading at 10% yield. Currently the price of the bond is 81.60. When the yield of the bond increases by 20 basis points the new price is 80.04, when the yield of the bond decreases by 20 basis points, the new price of the bond is 83.27. Calculate the approximate duration and approximate convexity measure of the bond.

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Calculate the approximate duration and approximate convexity

Reference No:- TGS03336217

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : Describe the debates over democracy in the early republic

Describe the debates over democracy in the early republic and explain 2 issues of political debate in the Jacksonian era over federal power.

Q : Show diagrams that support each factor that lead to price

In academic literature on futures markets research on the factors. Show diagrams that support each factor that lead to price convergence in these 2 markets.

Q : Discuss transaction size so that a transaction with pays fee

The fee is typically a fraction of the transaction size so that a transaction with a large amount pays a higher fee than a transaction with a small amount.

Q : ?describe the tactic used by interest groups

A) ?Describe the tactic used by interest groups that is referred to in the excerpt.

Q : Calculate the approximate duration and approximate convexity

A 20-year 7% coupon bond is trading at 10% yield. Calculate the approximate duration and approximate convexity measure of the bond.

Q : Who were major radio stars of era - the great depression

Who were the major radio stars of this era? (The Great Depression, 1930s) Provide at least two examples of radios starts, along with their famous roles.

Q : What stock price would you consider appropriate

The company has 555,000 shares of stock outstanding and a benchmark PE of 15.7 times. What stock price would you consider appropriate?

Q : How much should he be able to sell bond for in five years

How much should he be able to sell the bond for in 5 years if the market rate of return is 8% per year compounded quarterly?

Q : Research influential figure against jim crow laws

Research five influential figures from this time period who were instrumental in fighting against Jim Crow Laws.

1937888

Questions
Asked

3,689

Active Tutors

1454048

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Discuss statements about sociological approaches

Question: Which of the following statements about sociological approaches are true?

How are schools important in the struggle for power

Question: How are schools important in the struggle for power and status?

Which are forms of media bias

Question: Which of the following are forms of media bias? (Select all that apply)

How the major schools of thought within sociology

Question: Discover how the major schools of thought within sociology explain social stratification.

Why does victor coin the term hyper-violence

Why does victor coin the term hyper-violence instead of just using violence? And second, how is hyper-violence display in the Oakland community?

Examine gender inequality on a global scale

Question: Examine gender inequality on a global scale, considering how factors such as globalization, colonialism

Cases of local communities using modern technology

Question: Cases of local communities using modern technology to preserve and revive their traditions: