Chapter 14 - Duration
219 On the timeline the duration of the 9% bond should read 2.272 not 2.273
221 The calculation of the Volatility on the 5 year 5% bond should read
93.766 - 89.885 = 0.0423
91.800
222 The % of investment of the five year 9% annual coupon bond in 1 year is 0.077737 not 0.0787737

The convexity of the five year 9% annual coupon bond is 24.223 not 24.233

223 The volatility of the 5% bond should read:

Volatility  =   - 4.523  *  1%  = - 4.227  *  1%  =>  - 4.23%
  1.07

226 In the Table for the 5 Year 5% Annual Coupon Bond (Increase in Yield by 1%) in the final column

Estimated Price Change

- 0.041126081
     - 4.113%
226 In the Table for the 5 Year 5% Annual Coupon Bond (Decrease in Yield by 1%) in the final column

Estimated Price Change

+ 0.043415975
     + 4.342%
227 In the Table for the Example the duration of the first coupon should be 0.046361 rather than 0.044648
228
Modified Convexity =  0.351 years 2  = 0.348
( 1 + 0.06/12 ) 2
230
14-4
The convexity of the five year 9% annual coupon bond is 24.223 not 24.233
230
14-5
The convexity of the five year 9% annual coupon bond is 24.223 not 24.233