The convexity of an N-period zero coupon bond is 37.735 semi-annual periods. The N period spot rate

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The convexity of an N-period zero coupon bond is 37.735 semi-annual periods. The N period spot rate is 5.5% in semi-annual terms. Which of these statements is true:

The face value must be 1000

The duration must be 7 semi-annual periods

The duration of a zero coupon bond is independent of its YTM

All of the above

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Oct 10, 2023 06:27 AM

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The convexity of an N-period zero coupon bond is 37.735 semi-annual periods. The N period spot rate

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The correct statement is All of the above Lets break down each statement and explain why its true ba... View the full answer

Income Tax Fundamentals 2013

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