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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 1 July 2021. 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 1 July 2015 to create this portfolio and this portfolio is composed of 235 units of instrument A and 396 units of instrument B.
Instrument A is a zero-coupon bond with a face value of 100. This bond matures at par. The maturity date is 1 January 2030.
Instrument B is a Treasury bond with a coupon rate of j2=2.93% p.a. and face value of 100. This bond matures at par. The maturity date is 1 January 2024.
(c) What is the current duration of instrument B? Express your answer in terms of years and round your answer to three decimal places. Assume the yield rate is j2=3.83% p.a.

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