Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Today is 1 July, 2019. Siobhn has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and
Today is 1 July, 2019. Siobhn has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Siobhn purchased all instruments on 1 July 2011 to create this portfolio, which is composed of 34 units of instrument A and 23 units of instrument B.
Calculate the current duration of Siobhns portfolio using a yield to maturity of j2=4.29% p.a. Express your answer in terms of years and round your answer to two decimal places. |
Answer
a.
6.80 years
b.
7.32 years
c.
5.83 years
d.
6.03 years
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started