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Today is 1 July 2 0 2 1 . Joan has a portfolio which consists of two different types of financial instruments ( henceforth referred
Today is July Joan has a portfolio which consists of two different types of financial instruments henceforth referred to as instrument A and instrument B Joan purchased all instruments on
July to create this portfolio and this portfolio 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. The maturity date is January
Instrument B is a Treasury bond with a coupon rate of pa and face value of This bond matures at par. The maturity date is January
d Based on the price in part a and part b and the duration value in part c calculate the current duration of Joan's portfolio. Express your answer in terms of years and round your answer to
two decimal places.
a
b
c
d
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