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4. Consider an investment manager who holds the following Bond Portfolio with Bond A, and Bond B. Each bond has a face value of $1000

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4. Consider an investment manager who holds the following Bond Portfolio with Bond A, and Bond B. Each bond has a face value of $1000 and the market interest rate is 5%. Fill in the Market price of each bond. Then find the total portfolio value. Fill in the weights column, find the duration of each bond, and compute the Duration of the bond portfolio. Bond Maturity Market Price Annual Coupon Rate Units Held DUR Weights Market Value (S) of portfolio (5) A 10% 5 years 17,500 B 15% 10 years 5,000 Total

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