Suppose a bond has 25 years left to maturity, a 5% coupon rate, pays interest semi-annually, and has a 7% yield to maturity. If this bond has a Macaulay duration of 13 years and a convexity of 237.15, and the yield to maturity decreases 1/2%, an estimate of the percent price change in the bond due only to convexity would be
A) -0.60%
B) -0.30%
C) +0.30%
D) +0.60%
Correct Answer:
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