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 exercicio faz parte do curso
Bond Valuation and Analysis in Python
exercicio interativo prático
Tente este exercicio completando este código de exemplo.
# Find the price of 7 year bond with 3% coupon and 4% yield, shift yields and reprice
price = ____
price_up = ____
price_down = ____