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2. Consider the bond portfolio consisting of the following bonds: Bond Market Value Modified Duration W Y 4 7 $11 million $29 million $30 million

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2. Consider the bond portfolio consisting of the following bonds: Bond Market Value Modified Duration W Y 4 7 $11 million $29 million $30 million $50 million 8 Z 6 a) What is the portfolio's duration? b) If interest rates for all maturities change by 5 basis points, what is the approximate percentage change in the value of the portfolio

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