Business, 24.12.2020 05:20 ranaawilliamsoowl6dk

A 30-year maturity bond making annual coupon payments with a coupon rate of 12% has duration of 11.54 years and convexity of 192.4. The bond currently sells at a yield to maturity of 8%. If the bond yield decreases from 8% to 7%, what would be the predicted price change using the duration-convexity rule (in percentage points, round to the first decimal place)

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A 30-year maturity bond making annual coupon payments with a coupon rate of 12% has duration of 11.5...

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