Calculate change in price of the bond

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Reference no: EM132801569

Question - Bond P has face value of Rs.2000. Coupon Rate of 10% per annum. Market Yield is 5%. Maturity of 10 years. Duration of the Bond 8 Years. There happens change in the market and the yield change to 7% from 5%.

1. If annual convexity is 12. Calculate change in Bond Price?

2. Calculate Duration?

3. Calculate Modified Duration?

4. Calculate Change in Price of the bond, without considering convexity?

5. If annual convexity is 12. Calculate change in Bond Price?

6. Calculate semi-annual convexity?

Reference no: EM132801569

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