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A bond portfolio named DEX, comprises four bonds (face value=$1000): 50 semi-annual bond, 5-year maturity, a coupon rate of 4%. 100 annual bonds, 30-year maturity,

A bond portfolio named DEX, comprises four bonds (face value=$1000):

  1. 50 semi-annual bond, 5-year maturity, a coupon rate of 4%.
  2. 100 annual bonds, 30-year maturity, 8% coupon bond.
  3. 150 zero coupon bonds, 10-year maturity.
  4. 200 zero coupon bonds, 20-year maturity.

If required yield is 6% for all bonds per year, and

Bond 1 (semi-annual coupon bond):

23.19

Bond 2 (annual coupon bond):

212.40

Bond 3 (zero coupon bond):

98.97

Bond 4 (zero coupon bond):

107.00

Given DEX convexity, when the yield increases from 6% to 7%, the DEXs market value should fall by how much ($)?

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