Question: Please show calculation (not Excel) 100 x (1.06)2 = 112.36 (++t) x PV of ce 5. Find the convexity of a two-year maturity, 6% coupon
Please show calculation (not Excel)
100 x (1.06)2 = 112.36 (++t) x PV of ce 5. Find the convexity of a two-year maturity, 6% coupon bond selling at a yield to maturity of 8%. The bond pays its coupons semi-annually. t2t PV of CF CF 2 11.12 55.56 6 308.64 16030 603 51.44 47.63 12 60 571.56 Irror 3 77
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