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You hold a portfolio of bonds as shown below: Bond amount invested yield to maturity Macaulay duration governement 10000 6% 7.12 company A 20000 7%

You hold a portfolio of bonds as shown below:

Bond amount invested yield to maturity Macaulay duration
governement 10000 6% 7.12
company A 20000 7% 8.34
company B 30000 8% 9.56

1- Calculate your portfolio bond duration.

2- If market interest rates increase to 9%, how much will the price of Company A change in percentage terms?

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