How much absolute difference on modified duration values

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Problem 1: You are creating a portfolio that consists of the following two bonds. Bond A pays an annual 7% coupon, matures in two years, has a yield to maturity of 8%, and a face value of $1,000. Bond B pays an annual 8% coupon, matures in three years, has a yield to maturity of 9%, and a face value of $1,000. How much is the absolute difference on the modified duration values of the two bonds ?

Reference no: EM132736360

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