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You own a bond portfolio which is worth $10 million and Macaulay duration of the bond portfolio is 5 years. Half of the bond portfolio
You own a bond portfolio which is worth $10 million and Macaulay duration of the bond portfolio is 5 years. Half of the bond portfolio is 2 year coupon bond with Macaulay duration of 1.89 and the other Half of the bond portfolio is zero coupon bond What is Macaulay duration of zero coupon bond?
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