Question: This is the answer for 9.9, but I do not know how to calculate it. Can you please provide step by step calculation. 9.9 A

This is the answer for 9.9, but I do not know

This is the answer for 9.9, but I do not know how to calculate it. Can you please provide step by step calculation.

9.9 A six-year bond with a continuously compounded yield of 4% provides a 5% coupon at the end of each year. Use duration and convexity to estimate the effect of a 1% increase in the yield on the price of the bond. How accurate is the estimate

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