The duration of $ 1 , 0 0 0 1 5 - year annual 7 % coupon

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Question:

The duration of $

1, 000 15 -

year annual

7 %

coupon bond, trading on a YTM of

7 %

9.587

years. The convexity is

152.45 .

Using the duration approximation with convexity adjustment, find the estimated bond price change for a

1 %

reduction in interest rates.

Posted Date: May 13, 2024 02:32 AM

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The duration of $ 1 , 0 0 0 1 5 - year annual 7 % coupon

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