Question: Consider a four year bond with nominal value 100 and coupon 4. The yield curve is flat at y=0.025. Calculate the change of the present

Consider a four year bond with nominal value 100 and coupon

Consider a four year bond with nominal value 100 and coupon 4. The yield curve is flat at y=0.025. Calculate the change of the present value of the bond for a yield change of +100 basis points using (i) the exact calculation, (ii) duration approximation, and (iii) duration and convexity approximation

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