You are given the following information about a bond: i) The term-to-maturity is two years. ii)...
You are given the following information about a bond: i) The
term-to-maturity is two years.
ii) The bond has a 9% annual coupon rate, paid semiannually. iii)
The annual bond-equivalent yield to maturity is 8%.
iv) The par value is $100.
Calculate the convexity of the bond.
A. 4.03 B. 4.12 C. 4.24 D. 4.31 E. 4.46
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