Question: 20. Suppose you are considering adding the bond in #19 above to your portfolio Before doing so, you need to know the duration of the

20. Suppose you are considering adding the bond in #19 above to your portfolio Before doing so, you need to know the duration of the bond. Please compute the duration and modified duration of the bond at an 4% yield to maturity. Suppose interest rates increase by 1 percentage point (100 basis points), based upon duration, how much will the bond's value change? Will the change be positive or negative? Why Focus 20 16 TOSHIBA Y UI O P H J K L

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