We have a 30 year 10 % bond with a ytm of 10%. It the interest...

We have a 30 year 10 % bond with a ytm of 10%. It the interest rates alter by 3%, show the price change with duration and convexity, if convexity is 35. What is the exact price alteration?

please no excel but formulas

Expert Solution

Price Change is $ 745.63

REVISED PRICE = 1000+745.63

= 1745.63

Duration working is given below.

jeff jeffy answered 1 year ago

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