You have $325,000 invested in bond A which has a modified duration of 8.21 and...

70.2K

Verified Solution

Question

Finance

image
You have $325,000 invested in bond A which has a modified duration of 8.21 and $180,000 invested in bond B which has a modified duration of 13.54. If interest rates fall by 75 basis points, your portfolio would gain/lose approximately how much money? lose $38,290.88 gain $40,287.50 lose $40,287.50 gain $38.290.88

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students