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The modifed duration of a bond portfolio worth $1 million is 5 years. By approximately how much does the value of the portfolio change if
The modifed duration of a bond portfolio worth $1 million is 5 years. By approximately how much does the value of the portfolio change if all yields decrease by 5 basis points?
Select one:
a. Decrease of $25,000
b. Increase of $2,500
c. Decrease of $2,500
d. Increase of $25,000
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When yields decrease bond prices increase the proportional ...
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