Calculate the bond effective convexity

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A 5-year bond with a coupon of 6.7% coupons semiannually. It is currently yielding 6.4%. Its current price is 101.25. If the bond's yield increases by 15 base points, then its price falls to 100.6225. If the bond's yield falls by 15 base points, then its price rises to 101.8827. Calculate the bond's effective convexity.

Reference no: EM132185016

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