Assume that a portfolio with a Yield to Maturity of 2.3%  increases from  by 0.50%, 0.75%, 1.00%, and 1.25%. What is the expected impact on the portfolio's value using the sensitivity formula? You can pretend the portfolio's price is $100 for deriving the expected impact and depict the impact in a bar or line chart. 

What is the problem with duration for estimating this impact?

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SOLUTION To calculate the expected impact on the portfolios value using the sensitivity formula we c... View the full answer