Question: You manage a bond portfolio for a client. The client consists of a $50,000 zero-coupon bond that matures in 7 years and a $150,000 coupon

You manage a bond portfolio for a client. The client consists of a $50,000 zero-coupon bond that matures in 7 years and a $150,000 coupon bond with a duration of 15 years. The current portfolios yield to maturity is 8%. What is the estimated change in value of the portfolio if interest rates rise to 9%? (Show your work.)

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