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-0.07 and 0.07 dont work MLK Bank has an asset portfolio that consists of $110 million of 30-year, 11 percent coupon, $1,000 bonds with annual
-0.07 and 0.07 dont work
MLK Bank has an asset portfolio that consists of $110 million of 30-year, 11 percent coupon, $1,000 bonds with annual coupon payments that sell at par -1. What will be the bonds' new prices if market yields change immediately by + 0.10 percent? -2. What will be the new prices if market yields change immediately by + 2.00 percent? b-1. The duration of these bonds is 9.6501 years. What are the predicted bond prices in each of the four cases using the duration rule? 1-2. What is the amount of error between the duration prediction and the actual market values? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required Required Required Required A1 AZ B1 B2 What is the amount of error between the duration prediction and the aclyal market values? (Do not round intermediate calculations. Round your answers to decimal places. (e.g., 32.16)) Show less Amount of Error AL 0.10% (0.07 S AL 0.07 10.10% | At 20% 23.90 31.60 20% Step by Step Solution
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