Question: Use the following information to answer this question: Coupon = 5.5%, Semiannual Payments; Current YTM = 4.5%; Maturity = 5 years; Par Value = $1000;

Use the following information to answer this question: Coupon = 5.5%, Semiannual Payments; Current YTM = 4.5%; Maturity = 5 years; Par Value = $1000; Current Price = $1044.33; approximate modified duration = 5.0000; approximate convexity = 23.000. Use the combined effect of both the duration and convexity measures to estimate the price of the bond after a 100-basis-point increase in the YTM.

Group of answer choices

$993.3145

$989.1684

$ 999.5432

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