Given the following information, what is the approximate convexity measure for the bond if the yield changes by 90 basis points? Coupon rate 5% YTM 7% Maturity (in years) 5 FV $1,000

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
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Given the following information, what is the approximate convexity measure for the bond if the yield changes by 90 basis points?

Coupon rate

5%

YTM

7%

Maturity (in years)

5

FV

$1,000

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