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Calculate the duration-moded duration

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Reference no: EM133114308

Suppose in Month 1 the yield on ten-year bonds issued by the government in a count, was 1.8% (also the coupon rate). In the following Month 2, the yield was 2.3%. Predict the effect of these changes in yield on the price of the ten-year government bonds, assume a face value. 1000. You will need to calculate the duration. moded duration, convexity and clearly explain your results.

Reference no: EM133114308

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