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Portfolio A consists of a one-year zero-coupon bond with a face value of $3,000 and a 10-year zero-coupon bond with a face value of $7,000.
Portfolio A consists of a one-year zero-coupon bond with a face value of $3,000 and a 10-year zero-coupon bond with a face value of $7,000. Portfolio B consists of a 5.95-year zero-coupon bond with a face value of $4,500. The current yield on all bonds is 10% per annum (continuously compounded). The value of Portfolio B is Enter to 2 decimal places (e.g. 2.34) The percentage change for a 3.5\% per annum increase in yield for Portfolio B will (increase/decrease) The percentage change for a 3.5% per annum increase in yield for Portfolio B will change the value by Please answer all parts of the question. the value Enter to 2 decimal places (e.g. 2.34)
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