A 0% coupon bond maturing in 10 years is yielding 5.29%. The bond's duration is 14.1 years and its convexity is 106.34. What is the new price of the bond if the interest rate rises 1.00%? Multiple Choice $597.21 $513.01 $516.18 $864.

A 0% coupon bond maturing in 10 years is yielding 5.29%. The bond's duration is 14.1 years and its convexity is 106.34. What is the new price of the bond if the interest rate rises 1.00%? Multiple Choice $597.21 $513.01 $516.18 $864.

Operations Research : Applications and Algorithms

4th Edition

ISBN:9780534380588

Author:Wayne L. Winston

Publisher:Wayne L. Winston

Chapter15: Deterministic Eoq Inventory Models

Section15.4: The Continuous Rate Eoq Model

Problem 4P

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Time Complexity

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A 0% coupon bond maturing in 10 years is yielding 5.29%. The bond's duration is 14.1 years and its convexity is 106.34. What is the new price of the bond if the interest rate rises 1.00%?

Multiple Choice

$597.21

$513.01

$516.18

$864.32.

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