Combining duration and convexity
Now let's combine everything you have learned in the last few chapters by using both duration and convexity to predict bond price changes. Take a 7 year bond that pays an annual coupon of 3% and has a yield to maturity of 4%.
numpy_financial has already been imported for you as npf.
Este ejercicio forma parte del curso
Bond Valuation and Analysis in Python
ejercicio interactivo práctico
Prueba este ejercicio completando este código de ejemplo.
# Find the price of 7 year bond with 3% coupon and 4% yield, shift yields and reprice
price = ____
price_up = ____
price_down = ____