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Consider the following two T-bonds, prices are taken on 10/22/2020: Maturity Coupon Bid price Ask price Yield Duration 11/15/2040 4.250% 151.012 151.032 8/15/2050 1.375% 93.124

Consider the following two T-bonds, prices are taken on 10/22/2020:

Maturity

Coupon

Bid price

Ask price

Yield

Duration

11/15/2040

4.250%

151.012

151.032

8/15/2050

1.375%

93.124

93.144

A pension fund manager has $10m invested in bond 1 and $25m invested in bond2. What will be the total change in value of his portfolio if interest rates increase by 50BP?

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