Question
Consider an investment manager who holds the following Bond Portfolio with Bond A, and Bond B. Each bond has a face value of $1000 and
- Consider an investment manager who holds the following Bond Portfolio with Bond A, and Bond B. Each bond has a face value of $1000 and the market interest rate is 10%.
Fill in the Market price of each bond. Then find the total portfolio value. Fill in the weights column, find the duration of each bond, and compute the Duration of the bond portfolio.
| Bond | Annual Coupon Rate | Maturity | Market Price ($) | Units Held | Market Value ($) of portfolio | DUR | Weights |
| A | 10% | 5 years |
| 17,500 |
|
|
|
| B | 15% | 10 years |
| 5,000 |
|
|
|
| Total |
|
|
|
Write it with your own words please within 200-300 words, dont copy paste please from others, Write the answers with the explanation as TYPED not as picture
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77861671, 978-0077861674
