Calculate the approximate convexity for the bond

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Reference no: EM132194258

Question - A 20-year, 7.500% annual payment bond settles on a coupon date. The bond's yield to maturity is 9.400%.

(a) Calculate the approximate convexity for the bond.

(b) Calculate the change in the full bond price for a 40 bps change in yield.

Reference no: EM132194258

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