Calculate the duration for this bond

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Reference no: EM133925397

Problem

Consider a 25-year maturity Euro area zero-coupon bond with a par value of €100 and a 2.66% implied spot rate. i) Calculate the price of this bond. ii) Calculate the duration for this bond. iii) Calculate the convexity for this bond. iv) What do you observe about your results? Calculate the duration for this bond Assume an annual coupon payment frequency for your calculations.

Reference no: EM133925397

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