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Calculate the duration and convexity of a two-year bond

Question:

Calculate the duration and convexity of a two-year bond, with an 8% coupon rate (coupons are paid semiannually), 10% yield-to-maturity and a face value of 1000. If the yield increases by 50 basis points (=0.5%), how much does the price change? How incorrect is the linear estimation?

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Finance Basics: Calculate the duration and convexity of a two-year bond

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