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An investor buys a two-year par-valued bond of 1,000 and a four-year par-valued bond of 4,000. Both bonds have an effective annual yield of 6%

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An investor buys a two-year par-valued bond of 1,000 and a four-year par-valued bond of 4,000. Both bonds have an effective annual yield of 6% and both are zero-coupon bonds. Compute the modified convexity of the investor's holdings

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