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

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MLK Bank has an asset portiolio that consists of $160 million of 15 year. 8.5 percent annual coupon, $1,000 bonds that sell at par a-1. What will be the bonds new prices if market yields change immediately by \pm 010 percent? 0-2. What will be the new prices if market yieids change immediately by \pm 200 percent? b-1. The duration of these bonds is 9.0101 years. What are the predicted bond prices in each of the four cases using the duration rule? b-2. What is the amount of ertor 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 9.0x01 years. What are the predicted bond poces in each of the four cases using the duration places. (0.9,72:16) )

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