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.

Question

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.

Quizplus · Accepted Answer

The Answer is Annualized expected return on the bond is 0.0815%.

Use the Following Discount Factors When Needed