Question
You form a portfolio with a Macaulay duration of 5 years, yet you intend to hold this portfolio for only 3 years. The bonds in
You form a portfolio with a Macaulay duration of 5 years, yet you intend to hold this portfolio for only 3 years. The bonds in your portfolio have various maturities that range from 1 to 6 years. Are you more worried about an interest-rate increase or decrease?
Group of answer choices
Increase
Decrease
Equally worried about increase and decrease
Cannot be determined based on the information provided
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The Limits Of Surveillance And Financial Market Failure Lessons From The Euro-Area Crisis
Authors: K. Shigehara (
1st Edition
1137471468, 1137471476, 9781137471468, 9781137471475
