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a) The duration of a $100 million portfolio is 10 years. $40million dollars in new securities are added to the portfolio, increasing the duration of

a) The duration of a $100 million portfolio is 10 years. $40million dollars in new securities are added to the portfolio, increasing the duration of the portfolio to 12.5 years. What is the duration of the $40 million in new securities? b) What will happen to the value of its portfolio if the general level of interest rates increased from 8% to 8.5%?

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