$($ Fixed Income Securities $)$

Q$4$ A portfolio of zero bonds is comprised of $30$million of $2$ year bonds, $15$million of $3$ year bonds and $5$million of $5$ year bonds. What is the duration of the portfolio?

A$)2\mathrm{.}6$ years

B$)2\mathrm{.}5$ years

C$)2\mathrm{.}4$ year

D$)2\mathrm{.}3$ years

Q$5$ A portfolio of zero bonds is comprised of $30$million of $2$ year bonds and $5$million of $5$ year bonds and a liability of $15$million of $3$ year bonds. What is the duration of the portfolio?

A$)0\mathrm{.}8$ years

B$)2\mathrm{.}0$ years

C$)0\mathrm{.}6$ years

D$)1\mathrm{.}6$ years

Q$6$ A portfolio of zero bonds is comprised of $10$million of $2$ year bonds and $5$million of $5$ year bonds and a liability of $15$million of $3$ year bonds. What type of duration should be calculated for this portfolio?

A$)$ Straight duration

B$)$ Modified duration

C$)$ Macaulay duration

D$)$ Dollar duration