Question: Please explain thoroughly, will rate 5. (Duration estimate) A certain bond portfolio has a value of 1,000 today at a yield of 10%. Yesterday the

Please explain thoroughly, will rate

5. (Duration estimate) A certain bond portfolio has a value of 1,000 today at a yield of 10%. Yesterday the same portfolio had a value of $990 at a yield of 10.5%. (a) Estimate what the modified duration was yesterday. (b) Estimate what the duration was yesterday, assuming daily compounding (365 days/years)

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