WAY Co., issued a 5-year bond with a face value of ₱50,000 with a coupon rate of 8% annually and a yield to maturity of 12%. The bond’s convexity would be closest to: a. 14.91 b. 19.67 c. 20.84 d. 17.62 e. 19.20

WAY Co., issued a 5-year bond with a face value of ₱50,000 with a coupon rate of 8% annually and a yield to maturity of 12%. The bond’s convexity would be closest to: a. 14.91 b. 19.67 c. 20.84 d. 17.62 e. 19.20

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

WAY Co., issued a 5-year bond with a face value of ₱50,000 with a coupon rate of 8% annually and a yield to maturity of 12%. The bond’s convexity would be closest to:

a. 14.91

b. 19.67

c. 20.84

d. 17.62

e. 19.20

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