If you construct a bond portfolio with five 6% coupon (semiannual payment), duration of 2.79 years,...
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If you construct a bond portfolio with five 6% coupon (semiannual payment), duration of 2.79 years, 3-year maturity bond sells at par ($1,000) and six 1-year zero coupon bond sells for $950. (a) Calculate the portfolio duration. (b) Calculate the yield for the portfolio. (a) #N/A (b) #N/A (5 points) (5 points) If you construct a bond portfolio with five 6% coupon (semiannual payment), duration of 2.79 years, 3-year maturity bond sells at par ($1,000) and six 1-year zero coupon bond sells for $950. (a) Calculate the portfolio duration. (b) Calculate the yield for the portfolio. (a) #N/A (b) #N/A (5 points) (5 points) If you construct a bond portfolio with five 6% coupon (semiannual payment), duration of 2.79 years, 3-year maturity bond sells at par ($1,000) and six 1-year zero coupon bond sells for $950. (a) Calculate the portfolio duration. (b) Calculate the yield for the portfolio. (a) #N/A (b) #N/A (5 points) (5 points) If you construct a bond portfolio with five 6% coupon (semiannual payment), duration of 2.79 years, 3-year maturity bond sells at par ($1,000) and six 1-year zero coupon bond sells for $950. (a) Calculate the portfolio duration. (b) Calculate the yield for the portfolio. (a) #N/A (b) #N/A (5 points) (5 points)
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Solution a To calculate the portfolio duration we need to calculate the weighted average duration of ... View the full answer
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