Question
What is the annualized convexity measure of a 2-year note with a 6% annual coupon rate...
What is the annualized convexity measure of a 2-year note with a 6% annual coupon rate (coupons paid semiannually), and a yield of 12%? Round to four decimals. (show work)
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Answer #1
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let us assume the face value of the bond is $1000.
Convexity= 4.1806
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