Question
Current Bond Portfolio DescriptionFMVPriceMaturityCouponDurationA35,6581,062.23766.50B52,5611,035.50544.56C75,5211,035.50545.67D41,471992.45231.64E83,6391,028.78463.25 A client is considering adding a new corporate bond, F, to their bond portfolio above. The zero coupon bond would be
Current Bond Portfolio
DescriptionFMVPriceMaturityCouponDurationA35,6581,062.23766.50B52,5611,035.50544.56C75,5211,035.50545.67D41,471992.45231.64E83,6391,028.78463.25
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 couple added $50,000 worth of this bond to their bond portfolio, what would the new weighted average duration be of the new bond portfolio?
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
