Question: 3 Consider a 2 0 year, semiannual - pay bond with 8 % coupon that is currently priced at $ 9 0 8 . 0

3 Consider a 20 year, semiannual- pay bond with 8% coupon that is currently priced at $908.00 to yield 9%. Calculate the bonds effective duration and effective convexity for a 50 basis point change in yield.

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