Using the information in the table, calculate the modified duration of the 4.75% Treasury Security...
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Using the information in the table, calculate the modified duration of the 4.75% Treasury Security due 2045 and the modified duration of the portfolio.
2. The Hospital Pension Fund contains noncallable US Treasuries shown in the table below. Price if Yields Change Up 100 Down 100 Basis Basis Points Points Modified Duration 99.245 103.595 2.15 Par Value Treasury Market Current Security Value ($) Price (Per $100 of Par Value) 48,000,000 2.375% 48,667,680 101.391 Due 2023 50.000.000 4.75% Due 50,000,000 100.000 2045 98,000,000 Total Bond 98,667,680 Portfolio 86.372 116.887
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