Corporate us bonds 2 payable annually on a nominal value of


Corporate US Bonds 2% payable annually on a nominal value of $1,000 and maturing in 4 years. The yield to maturity is 2.5%. Calculate

a. Macaulay duration.

b. Modified duration.

c. Convexity

d. Price value change of a rise in yields of 25 basis points using modified duration and convexity.

e. Price change by determining the prices of bonds with YTM of 2.75% and 2.5% respectively.

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Financial Management: Corporate us bonds 2 payable annually on a nominal value of
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