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1] Assuming all four bonds are selling to yield 5%, compute the following for each bond: a. Effective duration based on a 25 basis point

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1] Assuming all four bonds are selling to yield 5%, compute the following for each bond: a. Effective duration based on a 25 basis point rate shock {y = 0.0025) b. Effective duration based on a 50 basis point rate shock (y = 0.0050}

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