Par Value = $1000 Coupon Rate = 8% paid annually Time to maturity = 3 yrs Interest

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Par Value = $1000

Coupon Rate = 8% paid annually

Time to maturity = 3 yrs

Interest rate = 5%

Calculate the duration, modified duration and convexity for this. I am at a loss here. Please advise

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Posted Date: Apr 08, 2024 01:51 PM

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Par Value = $1000 Coupon Rate = 8% paid annually Time to maturity = 3 yrs Interest

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Expert Answer:

To calculate the duration modified duration and convexity of a bond we can use the following formula... View the full answer

Investments

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