Question: Suppose settlement is on a coupon payment date, so t/T = 0. For a 10-Year, 6% annual payment bond with face value =$100. Assume the

Suppose settlement is on a coupon payment date, so t/T = 0. For a 10-Year, 6% annual payment bond with face value =$100. Assume the yield-to-maturity is r= 5%.

Q. Calculate the bond price P0 [P0 = bond price (par = 100, coupon = 6%, Mat = 10, yield = 5%)], Macaulay duration, and convexity.

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