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Use the Following Discount Factors When Needed

Question 13

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Use the following discount factors when needed. Use the following discount factors when needed. -Calculate the convexity of the following portfolio: i. 4 units of a 1.5-year ?xed rate bond paying 4% quarterly. ii. 5 units of a 1.5-year ?xed rate bond paying 5% semiannually. iii. 10 units of a 1.5-year zero coupon bond. iv. 3 units of a 1.5-year ?oating rate bond with no spread paid semian- nually.
-Calculate the convexity of the following portfolio:
i. 4 units of a 1.5-year ?xed rate bond paying 4% quarterly.
ii. 5 units of a 1.5-year ?xed rate bond paying 5% semiannually.
iii. 10 units of a 1.5-year zero coupon bond.
iv. 3 units of a 1.5-year ?oating rate bond with no spread paid semian- nually.

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