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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 one-year zero-coupon bond with a face value of R2000 and a 10-year zero-coupon bond with a face value of R6000. Portfolio B consists of a 5.95-year zero-coupon bond with a face value of R5000. The value of Portfolio A is R4016.95 and the value of Portfolio B is R2757.81. The current yield on all bonds is 10% per annum. The values of Portfolio A and Portfolio B with a 6% increase in the yield is R2915.67 and R1929.84 respectively. Calculate the percentage reduction in the values of Portfolio A and Portfolio B when the yield increases by 6% per annum. (2)

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