A bond is currently trading for 98.722 per 100 of par value. If the bonds yield-to-maturity (YTM)
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A bond is currently trading for 98.722 per 100 of par value. If the bond’s yield-to-maturity (YTM) rises by 10 basis points, the bond’s full price is expected to fall to 98.669. If the bond’s YTM decreases by 10 basis points, the bond’s full price is expected to increase to 98.782. The bond’s approximate convexity is closest to:
A. 0.071.
B. 70.906.
C. 1,144.628.
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