Question
An investor holds 300 of 10% Treasury coupon bonds with $1000 face value that are selling at par. The duration of each bond is 5
An investor holds 300 of 10% Treasury coupon bonds with $1000 face value that are selling at par. The duration of each bond is 5 years.
The same investor also holds 200 of 5% corporate coupon bonds with $1000 face value that are selling at par with a duration of 10 years.
Calculate the duration of the bond portfolio for this investor. Explain how you came up with the answer.
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Horngrens Financial & Managerial Accounting, The Managerial Chapters
Authors: Tracie Miller Nobles, Brenda Mattison
7th Edition
0136503616, 9780136503613
