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Western Investments holds a fixed-income portfolio comprised of four bonds whose market values and durations are given in the following table.(Click on the icon located
Western Investments holds a fixed-income portfolio comprised of four bonds whose market values and durations are given in the following table.(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)
Bond A | Bond B | Bond C | Bond D |
| |
Market Value | $200,000 | $300,000 | $250,000 | $550,000 | |
Duration | 4 | 6 | 7 | 8 |
The portfolio's duration is closest to:
(Select the best answer below.)
A.
6.06
B.
6.73
C.
6.25
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