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8. DongHwa Bank hold a portfolio comprising the following securities: 10 million bond with duration 4 years 20 million securities with duration 6 years

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8. DongHwa Bank hold a portfolio comprising the following securities: 10 million bond with duration 4 years 20 million securities with duration 6 years 40 million bonds with duration 5 years What is the duration of the total portfolio? (8 points) 9. Holding other things equal, how does an increase in interest rates affect a security's duration? (5 points)

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