What the estimated price of the bond is closest to

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Problem 1: If a treasury bond has an annual modified duration of 10.27 and an annual convexity of 143, which of the following is closest to the estimated percentage price change in the bond of a 125 basis point increase in interest rate?

Problem 2: A 12-year corporate bond with a 4.25% coupon is priced at $107.30. This bond's duration and convexity are 9.5 and 107.2. If the bond's yield decreases by 100 basis points, the estimated price of the bond is closest to

Reference no: EM132830983

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