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3. Use the cash flows of a portfolio of the following three bonds to calculate the yield to maturitu of the portfolio. Each bond has
3. Use the cash flows of a portfolio of the following three bonds to calculate the yield to maturitu of the portfolio. Each bond has a face value of $1,000. Use the cash flows and yield to maturity calculate the duration of the portfolio. a. three-year zero-coupon bond with 5% yield, b. five-year zero-coupon bond with 7% yield, and c. seven-year zero-coupon bond with 6% yield. Verify your portfolio duration calculation using the weighted average of the individual bond durations
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