What is the bond approximate convexity

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1. A bond is currently trading for $104.45 per 100 of par value. If the bond’s yield-to-maturity (YTM) rises by 10 basis points, the bond’s full price is expected to fall to $104.00. If the bond’s YTM decreases by 10 basis points, the bond’s full price is expected to increase to $104.91. What is the bond’s approximate convexity?

2. A bond has an annual modified duration of 9.66 and annual convexity of 100. The bond’s yield-to-maturity is expected to decrease by 50 basis points. What is the expected percentage price change?

3. A bond has an annual modified duration of 5.09 and annual convexity of 120.75. If the bond’s yield-to-maturity increases by 50 basis points, what is the expected percentage price change?

Reference no: EM131848994

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