Question
The effective duration of the pool was reported by the state auditor as 7.4 years in December 1994. Suppose the Orange county did not liquidate
The effective duration of the pool was reported by the state auditor as 7.4 years in December 1994. Suppose the Orange county did not liquidate the portfolio worth $7.5 billon. In 1995, interest rates went down by about 1.5 %. Compute the change of portfolio value predicted by the duration approximation.
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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
3rd Canadian Edition
978-0133035575, 133035573, 978-0133970524, 133970523, 978-0134040042
