Question: PROBLEM 6 (18 MARKS) A company issues a bond that has a maturity of 2.5 years and pays semiannual coupons with 6 percent annual coupon

PROBLEM 6 (18 MARKS) A company issues a bond that has

PROBLEM 6 (18 MARKS) A company issues a bond that has a maturity of 2.5 years and pays semiannual coupons with 6 percent annual coupon rate. The par value is $1,000 and the bond is sold at par. a. (4 MARKS) What is the duration of this bond? b. (4 MARKS) What is the convexity of this bond? 10

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