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Consider two bonds: A 4-year bond with a duration of 3 years and a 10-year bond with a duration of 7 years. (ix) What is

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Consider two bonds: A 4-year bond with a duration of 3 years and a 10-year bond with a duration of 7 years. (ix) What is the duration of an equal weighted portfolio that invests the same dollar value in the two bonds? (10 points) (x) Suppose you have an investment horizon of 4 years. What weight should you put on the 10-year bond so the bond portfolio consisting of the 5-year and 10- year bonds has a duration that matches your investment horizon? a Weight on 10-year bond (10 points)

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