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Bond Market Value Macaulay Duration (years) $13 million X $27 million Y $60 million Z $40 million 14 a) What is the portfolio's Macaulay duration?

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Bond Market Value Macaulay Duration (years) $13 million X $27 million Y $60 million Z $40 million 14 a) What is the portfolio's Macaulay duration? b) The annual yield to maturity is 10%. What is the portfolio's modified duration? Assume semi-annual coupon payment. c) When the yield to maturity decreases to 9.9%, should the value of the portfolio increase or decrease? Use the modified duration to calculate the approximate percentage change in the value of the portfolio

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