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14 pts. You have two securities in your portfolio: Bond A, constitute 40% of your portfolio: perpetual bond with 7% yield. Bond B, constitute the

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14 pts. You have two securities in your portfolio: Bond A, constitute 40% of your portfolio: perpetual bond with 7% yield. Bond B, constitute the rest: 16 years to maturity, duration is 15.0 years, and 5% yield. Without considering the convexity effect, what is your portfolio percentage price change if yield decreases by 100 basis points? PLEASE STATE YOUR ANSWER IN PERCENT AND ROUND IT TO ONE DECIMAL POINT

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