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You have $250,000 invested in bond A which has a modified duration of 3 and $175,000 invested in bond B which has a modified duration
You have $250,000 invested in bond A which has a modified duration of 3 and $175,000 invested in bond B which has a modified duration of 12. If interest rates rise by 50 basis points, your portfolio would gain/lose approximately how much money? (State gain or loss and the dollar amount of change).
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