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Question 2: Assume that as an investment manager at Oman investment fund; you hold a large bond portfolio of Omani government bonds (long term) and
Question 2: Assume that as an investment manager at Oman investment fund; you hold a large bond portfolio of Omani government bonds (long term) and T-bills (short-terms). The interest rates are currently falling due to Covid-19. i. How your bond portfolio would be affected by falling interest rates? ii. How your t-bills portfolio would be affected by falling interest rates? iii. Which portfolio is more sensitive
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