Question: Rather than own a five - year bond and a 1 5 - year bond, suppose you sell both of them and invest in two

Rather than own a five-year bond and a 15-year bond, suppose you sell both of them and invest in two ten-year bonds. Each has a coupon rate of 8 percent (semi-annual coupons) and has a YTM of 9.20 percent. What is the value of your portfolio? What happens to the value of your portfolio if the YTM on the bonds rises by one percentage point?

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