Duration and convexity estimation

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The two years treasury bond payes coupon 8% per year (coupon paid twice a year). face value of bond is $1000. Please calculate (1) bond price. (2) duration of the bond. (3) convexity of bond. (4) If central bank decrease interest rate by 0.25%, what is the change of bond price by using duration and convexity estimation?

Reference no: EM132753385

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