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What is the change in value of fixed-income portfolio

Assignment:

A fixed-income portfolio with market value of USD 60 million, modified duration of 2.53 years and yielding 4.7% compounded semiannually. What would be the change in the value of this portfolio after a parallel rate decline of 20 basis points in the yield curve?

a. A loss of USD 607,200

b. A loss of USD 303,600

c. A gain of USD 303,600

d. A gain of USD 607,200

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Portfolio Management: What is the change in value of fixed-income portfolio

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