Question: Question 2 PT. XYZ intends to issue bonds with a nominal value of Rp. 100 million with a coupon will be paid annually at 10%.

Question 2

PT. XYZ intends to issue bonds with a nominal value of Rp. 100 million with a coupon will be paid annually at 10%. This bond has a tenor of 5 years. If it is known that the yield on other bonds with the same features and risk level has a YTM of 12%, calculate:

a. Bond fair price

b. Bond duration

c. Convexity bonds

d. If the interest rate increases by 2%, what is (1) the change in bond prices (in rupiah), (2) the estimated price change (in percent) with duration and convexity

e. Explain the results you get from the problem part (d)

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