Question: The same bond as in question 1 has a convexity of 1 1 5 . 8 1 . a . What is the convexity effect

The same bond as in question 1 has a convexity of 115.81.
a. What is the convexity effect (as a percentage of the bonds price) if the bonds yield-to-maturity increases by 50 basis points?
b. Considering the duration as well as the convexity, what is the total expected percentage price change if the bonds yield-to-maturity increases by 50 basis points?
c. What is the corresponding expected change in value of a portfolio which has $102,092.09 invested in the bond if the bonds yield-to-maturity increases by 50 basis points, considering both duration and convexity?

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