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Today is 1 July, 2 0 1 9 . Camilla has a portfolio which consists of two different types of financial instruments ( henceforth referred
Today is July, Camilla has a portfolio which consists of two different types of financial instruments henceforth referred to as instrument A and instrument B Camilla purchased all instruments on July to create this portfolio, which is composed of units of instrument A and units of instrument
Instrument A is a zerocoupon bond with a face value of $ This bond matures at par. Its maturity date is January
Instrument B is a Treasury bond with a coupon rate of pa and a face value of $ This bond matures at par. Its maturity date is January
What is the duration of instrument Express your answer in terms of years and round your answer to three decimal places. Assume a yield rate of pa
a years
b years
c years
d years
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