You are a fixed-income manager of a portfolio that consists of many bonds. Your analyst...
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Finance
You are a fixed-income manager of a portfolio that consists of many bonds. Your analyst has calculated the portfolios overall duration and you are confident in the precision of that calculation. You can use that duration to accurately estimate your portfolios:
Loss in value when yields rise by 25 bps across the entire curve
Gain in value when yields drop by 15 to 25 bps depending positioning in the yield curve
Gain in value when yields drop by 300 bps across the entire curve
Loss in value when yields rise by 300 to 400 bps depending positioning in the yield curve
Both B and C
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