The modifed duration of a bond portfolio worth $1 million is 5 years. By approximately how much

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The modifed duration of a bond portfolio worth $1 million is 5 years. By approximately how much does the value of the portfolio change if all yields decrease by 5 basis points?

Select one:

a. Decrease of $25,000

b. Increase of $2,500

c. Decrease of $2,500

d. Increase of $25,000

Related Book For answer-question

College Algebra

ISBN: 978-0134697024

12th edition

Authors: Margaret L. Lial, John Hornsby, David I. Schneider, Callie Daniels

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Posted Date: Nov 04, 2022 08:40 AM

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The modifed duration of a bond portfolio worth $1 million is 5 years. By approximately how much

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When yields decrease bond prices increase the proportional ... View the full answer

College Algebra

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