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c. A bond portfolio has modified duration 4 and convexity 18. What is the percentage reduction in the price of the bond if there is

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c. A bond portfolio has modified duration 4 and convexity 18. What is the percentage reduction in the price of the bond if there is a half-point reduction in the yield-to-maturity (50 basis points)? You should assume that the term structure is flat. (9 marks)

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