A portfolio manager wants to estimate the interest rate risk of a bond using duration. The current

Question:

A portfolio manager wants to estimate the interest rate risk of a bond using duration. The current price of the bond is 82. A valuation model found that if interest rates decline by 30 basis points, the price will increase to 83.50; if interest rates increase by 30 basis points, the price will decline to 80.75. What is the duration of this bond?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...