What is the modified duration of a three-year $1,000 par value bond with a 5% coupon paid semi- annually that is priced to yield 4%? 2.61 5.37 2.77 5.65 Question 6 4 pts You own two bonds. You have $2,000,000 in Bond A which has a modified duration of 8.14. You have $2,250,000 in Bond B which has a modified duration of 4.23. If rates rise by 50 basis points, what would be the approximate impact of the value of your portfolio? Gain $64,493.75 Lose $96,487.50 Gain $96,487.50 Lose $64,493.75