A 7.7% bond with semiannual coupons is quoted at 102.97. The bond has 4 coupons left. The previous coupon was paid 34 days age. Use the approximated duration and convexity to calculate the estimated quoted price given a 150bp increase in the ytm

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter14: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 6DTM
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A 7.7% bond with semiannual coupons is quoted at
102.97. The bond has 4 coupons left. The previous
coupon was paid 34 days age. Use the
approximated duration and convexity to calculate
the estimated quoted price given a 150bp increase
in the ytm
Transcribed Image Text:A 7.7% bond with semiannual coupons is quoted at 102.97. The bond has 4 coupons left. The previous coupon was paid 34 days age. Use the approximated duration and convexity to calculate the estimated quoted price given a 150bp increase in the ytm
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