Question
QUESTION 4PORTFOLIO DURATION (a) What is the duration of a portfolio that consists of the following bonds?BondMarket ValueDurationA$100,000,0002.09B$250,000,0003.11C$75,000,0002.83D$50,000,0004.20E$125,000,0007.05F$150,000,0006.91(b) if rates change by 200bp, approximately what
QUESTION 4PORTFOLIO DURATION(a) What is the duration of a portfolio that consists of the following bonds?BondMarket ValueDurationA$100,000,0002.09B$250,000,0003.11C$75,000,0002.83D$50,000,0004.20E$125,000,0007.05F$150,000,0006.91(b) if rates change by 200bp, approximately what is the change in the market value of the portfolio?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
15th edition
134796551, 134796550, 978-0134796550
