A $1,000 par value bond has a maturity of 2 years, a price of $1,062.63, a coupon rate of 6.25 percent, and a yield to maturity of 3 percent. What is the convexity of this bond? The bond pays interest semiannually.
A) 18.30
B) 10.89
C) 12.64
D) 31.57
E) 22.22
Correct Answer:
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