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$1000 and coupons are paid annually. (6 marks) (c) An investor decides to construct a bond portfolio made up of $20,000 in a bond with

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$1000 and coupons are paid annually. (6 marks) (c) An investor decides to construct a bond portfolio made up of $20,000 in a bond with a Macaulay duration of 5 years and $30,000 in a three-year zero- coupon bond (par value = $1,000). What is the Macaulay duration of this bond portfolio? (4 marks)

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