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Calculate the current net worth of the position

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Consider an asset with a current market value of $250 000 and a duration of 3.3 years. Assume the asset is partially funded through zero-coupon bonds which currently sells for $225 000 and has a maturity of 4 years. The current discount rate is 15 per cent and interest rates are expected to increase by 150 basis points. Calculate the current net worth of the position.

Reference no: EM131195870

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