Assuming matrix pricing was used for valuation, the estimated price of the illiquid bond is most likely to be closest to:

Critically discuss the similarities and differences between Markowitz’s Portfolio Theory or also known as Modern Portfolio Theory (MPT) and Capital Asset Pricing Model (CAPM).

Describe the relationship between coupon rate and required rate of return that will result in a bond selling at a discount, par value and a premium.

With regard to interest rate sensitivity measures and bonds: Group of answer choices C. Convexity attempts to capture the sensitivity of a bond’s duration to changes in interest rates. D. Both B & C B. Duration is related to yield approximation and convexity is related to price. A. Convexity is related to yield approximation and duration is related to price