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A bond portfolio has the key rate durations given in the table below. If the yield curve steepens with the one year rate declining by

  1. A bond portfolio has the key rate durations given in the table below. If the yield curve steepens with the one year rate declining by 100 basis points, the 5 year rate increasing 50 basis points, and the 10 year rate increasing 150 basis points, what is the estimated percentage change in the price of the portfolio?

Maturity (years)

Key Rate Duration

1

0.24

5

1.43

10

4.76

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