Question: - A $100 par value bond with 4% annual coupons and maturing at $108 in 3 years has an effective annual interest rate of 5%.

- A $100 par value bond with 4% annual coupons and maturing at $108 in 3 years has an effective annual interest rate of 5%. The modified convexity of this bond is equal to: a. 10.13 b. 10.25 c. 10.36 d. 10.45 e. 10.69

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