Question
As a fund manager at an investment management firm, you have created a portfolio of10,00,000in the following bonds: Bond A: 10-year UK Govt bond offering
As a fund manager at an investment management firm, you have created a portfolio of10,00,000in the following bonds:
Bond A: 10-year UK Govt bond offering 2% coupon, yielding 1.8%.
Bond B: 5-year Vodafone GBP bond offering 5% coupon, yielding 4.8%.
Bond C: 3-year Tesco GBP bond offering 5% coupon, yielding 5.2%.
Answer the following questions:
How does bond duration help debt fund managers in making better bond portfolios?
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International financial management
Authors: Jeff Madura
12th edition
1133947832, 978-1305195011, 978-1133947837
