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Business, 12.04.2021 23:10 irishdreamer0689

A 30-year maturity bond making annual coupon payments with a coupon rate of 12% has Macauly duration of 11.54 years and convexity of 192.4. The bond currently sells at a yield to maturity of 8%. (a)Please find the price of the bond if its yield to maturity falls to 7% or rise to 9%.(b)What prices for the bond at these new yields would be predicted by the duration rule and the duration-with-convexity rule

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