Show that the effective duration of a 5 year 6 semiannual
Show that the effective duration of a 5 year 6% semiannual bond overestimates the actual bond price change over 1, 2, and 5% changes on interest rates. Can you please show the math? My current teacher doesn't actually teach us how to do the math.
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show that the effective duration of a 5 year 6 semiannual bond overestimates the actual bond price change over 1 2 and
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