1. Calculate the price (per hundred face value), effective duration, convexity and DV01 of the each of the 2 bonds using the data provided: bond 1- Term to maturity is 3 years, Face value is 100, coupon rate is 2.5%, yield is 3.54%; Bond 2: Term to maturity is 10 years, Face value is 100, coupon rate is 2.75%, yield is 4.07%.

Answer rating: 100% (QA)

To calculate the price effective duration convexity and DV01 for each bond well use the given formul... View the full answer