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Assume that the term structure is flat at 1.5% (annualized interest rate). Bonds A and B have durations 7.9 and 11.4 years, respectively. Consider a

Assume that the term structure is flat at 1.5% (annualized interest rate). Bonds A and B have durations 7.9 and 11.4 years, respectively. Consider a portfolio investing 15% in bond A and the rest in bond B. What is the duration of such a portfolio?

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