What is the value of the note what is the quoted price of


Consider a Corporate bond that matures in 8.24 years, has a coupon rate of 5.21%, and pays a semi-annual coupon. The yield to maturity associated with this bond is 8.35% when quoted on an annual compounding basis. Please answer the following:

1. What is the value of the note?

2. What is the quoted price of the note?

3. What is the duration of the note?

4. What is the convexity of the note?

5. Please use both convexity and duration to estimate the expected change in the value of the bond as the yield to maturity when quoted on a semi-annual basis decreases by 75 basis points.

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Financial Management: What is the value of the note what is the quoted price of
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