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Portfolio A consists of a one - year zero - coupon bond with a face value of R 2 0 0 0 and a 1
Portfolio A consists of a oneyear zerocoupon bond with a face value of R and a year zerocoupon bond with a face value of R Portfolio B consists of a year zerocoupon bond with a face value of R The value of Portfolio A is R and the value of Portfolio B is R The current yield on all bonds is per annum. The values of Portfolio A and Portfolio B with a increase in the yield is R and R respectively. Calculate the percentage reduction in the values of Portfolio A and Portfolio B when the yield increases by per annum.
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