A 5-year bond has face value $1,000 (paid at maturity) and annual coupon rate 5% (paid...

 

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A 5-year bond has face value $1,000 (paid at maturity) and annual coupon rate 5% (paid in arrears at the end of the year). The yield-to-maturity is 5.3%. What is the duration and convexity of the bond? (9 marks) A 5-year bond has face value $1,000 (paid at maturity) and annual coupon rate 5% (paid in arrears at the end of the year). The yield-to-maturity is 5.3%. What is the duration and convexity of the bond? (9 marks)

Answer rating: 100% (QA)

Given Face value FV 1000 Annual coupon rate c 5 005 Number of years to maturity n 5 Yieldtomaturity ... View the full answer