Bank y has an inventory of 14-year zero-coupon bonds with a


Bank Y has an inventory of 14-year zero-coupon bonds with a face value of $400 million. The bonds currently are yielding 8.5 percent in the over-the-counter market. a. What is the modified duration of these bonds? b. What is the price volatility if the potential adverse move in yields is 25 basis points? c. What is the DEAR? --- Please explain all the steps in excel.

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Financial Management: Bank y has an inventory of 14-year zero-coupon bonds with a
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