What is the change in the portfolio value

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Reference no: EM131622005

There are 2 bonds in the portfolio. Their current prices, interest rates, and durations are listed below. What is the change in the portfolio value due to a 1% drop in the interest rate?

Bond A (Market Price = 900, Interest rate = 7%, Duration (year) 6)

Bond B (Market Price = 1100, Interest rate 5%, Duration (year) 4)

Reference no: EM131622005

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