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You are a portfolio manager of a fund that focuses on fixed income securities. The financial year has come to an end and you have

You are a portfolio manager of a fund that focuses on fixed income securities. The financial year has come to an end and you have presented a report to your client on the performance of the fund. One of the bonds has a duration of 25 and a maturity of 15 years. The client has written an acknowledgement of the report and given a comment on the performance though the client believes that there is an error because the duration is greater than the maturity. What would be your advice to the client? [5 marks]

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