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MLK Bank has an asset portfolio that consists of $160 millon of 15 -year, 8.5 percent annual coupon, $1,000 bonds that sell at par 0-1.

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MLK Bank has an asset portfolio that consists of $160 millon of 15 -year, 8.5 percent annual coupon, $1,000 bonds that sell at par 0-1. What will be the bonds' new prices if market yleids change immediately by =010 percent? 0.2. What will be the new prices if market yields change immediately by \pm 200 percent? b-1. The duration of these bonds is 90101 years. What are the predicted bond prices in each of the four cases using the duration rule? b-2. What is the amount of error between the duration prediction and the actual market values? Complete this question by entering your answers in the tabs below. The duration of these bonds is 9.0201 years, What are the predicted bond prices in each of the four cases using the duration blacesh (2.932:16) )

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