Question: Consider a three year bond with par value $500 that pays annual coupons of 10%. The yield to maturity is 12%. Calculate the price, duration,

Consider a three year bond with par value $500 that pays annual coupons of 10%. The yield to maturity is 12%. Calculate the price, duration, and convexity of this bond. Intuitively, why do bonds with higher yields have shorter durations?

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