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Consider the following where you have 3 bonds for your portfolio. Bond A has face value of $1,000, coupon rate of 4%, and years

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Consider the following where you have 3 bonds for your portfolio. Bond A has face value of $1,000, coupon rate of 4%, and years held of 3 years. Bond B has face value of $1,000, coupon rate of 6%, and years held of 4 years. Bond C has face value of $1,000, coupon rate of 0%, and years held of 5 years. The yield rate is 4%. Cash payouts were $12,000,000, $14,000,000, and $15,000,000. The value for the liability stream is $37,817,193.9..Calculate the following: a. b. C. d. What is the Bond A duration? What is the Bond B duration? What is the Bond C duration? What is the liability duration?

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To calculate the duration for each bond and the liability duration we can use the following formulas ... blur-text-image

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