A bondholder owns 10-year government bonds with a $1 million face value and a 4 percent...

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A bondholder owns 10-year government bonds with a $1 million face value and a 4 percent coupon that is paid annually. The bon

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Answer 1

Answer #1

Change in the bond's value=-Current Price*Duration/(1+yield)*change in rates=-1269181*8.59/1.01137*0.50%
=-53898.49803

Option C Lose 53898

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Answer 2

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