Consider the following bonuses:

Bonus	t=6	t=7	t=8	t=9	t=10	t=11
A, y=8,3%	250
B, y=12%		50	50	50	500	550
C, y=8,3%	100	100	300

a) Calculate the price and the duration of each of the bonuses.
b) Calculate the convexity of each of the bonds.
c) Considering only bonus A and B, calculate the first order immunization.
d) Considering the three bonuses, calculate the first and second order immunization.

Answer rating: 100% (QA)

a To calculate the price and duration of each bond you can use the following formulas Price Coupon Y... View the full answer