Question
Current Bond Portfolio Description | FMV | Price | Maturity | Coupon | Duration A | 35,658 | 1,062.23 | 7 | 6 | 6.50
Current Bond Portfolio
Description | FMV | Price | Maturity | Coupon | Duration
A | 35,658 | 1,062.23 | 7 | 6 | 6.50
B | 52,561 | 1,035.50 | 5 | 4 | 4.56
C | 75,521 | 1,025.45 | 5 | 4 | 5.67
D | 41,471 | 992.45 | 2 | 3 | 1.64
E | 83,639 | 1,028.78 | 4 | 6 | 3.25
A client is considering adding a new corporate bond, F, to their bond portfolio above. The zero coupon bond would be purchased for $810.52, matures in 8 years, and has a yield-to-maturity of 2.66%.
If the client added $50,000 worth of this bond to their bond portfolio, what would the new weighted average duration be of the new bond portfolio?
{Chegg table feature is not functional, apologies for the above format.}
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