Question
An investor's bond portfolio is made up of three bonds with the following characteristics: Obligation Annual coupon rate (paid annually) Terme Required annual rate of
An investor's bond portfolio is made up of three bonds with the following characteristics:
| Obligation | Annual coupon rate (paid annually) | Terme | Required annual rate of return |
| 1 | 6% | 3 years | 8% |
| 2 | 7% | 4 years | 10% |
| 3 | 9% | 6 years | 11% |
1- Suppose an investor bought these three bonds at their market values. What is the duration of this bond portfolio?
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Principles Of Finance With Excel
Authors: Simon Benninga
1st Edition
0195301501, 978-0195301502
