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The duration of a portfolio is equal to the value-weighted average of the durations of the bonds in the portfolio. If you have the
The duration of a portfolio is equal to the value-weighted average of the durations of the bonds in the portfolio. If you have the following portfolio of bonds and its mod duration is 5.6 years. Mod Duration 3.3 X=? Bond A B Value in $$ 220,000 440,000 then the mod duration of Bond B is Compute the weight of each bond in the total first. years.
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To compute the weight of each bond in the portfolio we need to divide the value of each bond by the ...
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Principles of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Franklin Allen
13th edition
1260013901, 1260565553, 978-1260013900
