What is the price change due to the convexity

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Reference no: EM131621989

For the following bond, Par value: $1,000 Coupon rate: 8% paid annually Time to maturity: 3 years Interest rate: 4% What is the convexity? Also if the interest rate increases from 4% to 5% what is the price change due to the convexity?

Reference no: EM131621989

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