question on one factor price sensitivity

[darshang3]

what is the best estimate of the market value of a portfolio of usd 100 million invested in recently issued 6% 10 year bonds and usd 100 million of long 10 year zero coupoun bond if interest rates decline by 0.50% ?

please throw some light on this question on how to go about to solve this question specifically how to calculate duration from this.


thanks in advance.


Regards
Darshan.

 

[David Harper CFA FRM]

see http://forum.bionicturtle.com/viewthread/2055/
(it is helpful if you source the question ... many of the difficult questions have been previously analyzed)

David