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Determine the percentage change in price of the bond

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Reference no: EM133074645

Assume you have a 10 year bond with a coupon rate of 3.00 % and a yield maturity to maturity of 3.00%, and a face value of $1,000. Shock the yield curve by 100 basis points. Determine the approximate duration and convexity of the bond. Determine the percentage change in price of the bond due to duration and convexity if there is 100 basis point increase and decrease in the yield.

Reference no: EM133074645

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