How the money duration & change in value were calculated?
Money duration = modified duration x Investment Value
Change in value = money duration / 100
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Money duration for bond 1 =- 3.539×114.972=4.068
I still wanna know how it was calculated
no,
3.539 \times 50
I am assuming that what they call investment value is the then current market value. A duration of 3.5 tells me that the portfolio value will drop by approximately 3.5% (the percent is key here) for every 100 bp paralled increase in the yield curve. For bond A, 50 * 3.539 / 100 = 176.96 / 100 = 1.7696 or approx 1.77.
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