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A bond portfolio consists of the following three fixed-rate bonds. Assume annual coupon payments and no accrued interest on the bonds. Prices are per
A bond portfolio consists of the following three fixed-rate bonds. Assume annual coupon payments and no accrued interest on the bonds. Prices are per 100 of par value. Bond A B C Maturity 6 years 10 years 15 years Market Value 170,000 120,000 100,000 Price 85.0000 80.0000 100.0000 Coupon 2.00% 2.40% 5.00% The bond portfolio's modified duration is closest to: A 7.62. B 8.08. ( 8.20. Yield-to- Maturity 4.95% 4.99% 5.00% Modified Duration 5.42 8.44 10.38
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Calculus
Authors: Ron Larson, Bruce H. Edwards
10th Edition
1285057090, 978-1285057095
