What is the percentage change in the value of the portfolio

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Problem 1: A portfolio manager created a portfolio consisting of a 1-year zero-coupon bond with a face value of R1,500 and a 5-year zero-coupon bond with a face value of R5,500. The current yield on all bonds is 10% per annum (continuously compounded). What is the percentage change in the value of the portfolio for a 0.62% per annum increase in yield?

Reference no: EM132941079

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