Question: a. Footnote 7 presents the formula for the convexity of a bond. Build a spreadsheet to calculate the convexity of a 5-year, 8% coupon bond
a. Footnote 7 presents the formula for the convexity of a bond. Build a spreadsheet to calculate the convexity of a 5-year, 8% coupon bond making annual payments at the initial yield to maturity of 10%.
b. What is the convexity of a 5-year zero-coupon bond?
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a Time t Cash Flow PVCF t t 2 t t 2 PVCF Coupon 80 ... View full answer
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