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Questions and Problems: (Note: students will be responsible for checking each question to make sure it is free of mistakes with regard to numbers and
Questions and Problems: (Note: students will be responsible for checking each question to make sure it is free of mistakes with regard to numbers and information) Q10) Bank Beta has an inventory of AAA-rated zero-coupon bonds with a maturity of 13.42 years and a face value of $127,503,041. The modified duration of these bonds is 12.5 year, the DEAR is $2,150,000, and the potential adverse move in yields is 35 basis points. What is the market value of the bonds, the yield on the bonds, and the duration of the bonds
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