Question
3.(Duration) Calculate the duration for each of following bonds or portfolio in (1)-4) and answer question (5). (1)A 14-year bond with 5% annual coupon and
3.(Duration) Calculate the duration for each of following bonds or portfolio in (1)-4) and answer question (5).
(1)A 14-year bond with 5% annual coupon and 4% yield to maturity.
(2)A 30-year bond with 4% annual coupon and 4% yield to maturity.
(3)A 100-year bond with 7% annual coupon and 4% yield to maturity
(4)A portfolio of bond (1) and (2), with 25% invested in bond (1) and 75% in bond (2).
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
