Question
A client has a 9.1-year investment horizon. Construct a portfolio with the following two bonds for this investor to help protect against interest rate risk.
A client has a 9.1-year investment horizon. Construct a portfolio with the following two bonds for this investor to help protect against interest rate risk. What is the weight to put on bond B in this portfolio? Macaulay duration Bond A 5.7 Bond B 12.8
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Financial Management Principles And Practices
Authors: Timothy J. Gallagher
9th Edition
1954156103, 978-1954156104
