Condider a $100 parvalue coupon-bearing bond with a 4% coupon rate and 5 -year maturity....
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Condider a $100 parvalue coupon-bearing bond with a 4% coupon rate and 5 -year maturity. The prevailing risk-free ratecogiag ibe Ife of th bond is 8s per annum with continuous compounding. a) Calculate the price of the bond described above (Enter numeric value only, no dollar sign or comma. Keen 2 . Df Calcubte the duration of the bond. (Enter numeric value only, no dollar sign or comma. Keep 2 decimal places) d Calcubte the convexity of the bond (Enter numeric value only, no dollar sign or comma. Keep 2 decimal places) di Use the apprasimation given by duration and convexity, to calculate the percentage change in bond price given a 30 basis points incre Vild (thpress in %. Keep 2 decimal places, eg. 1.23\%)
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