A portfolio consists of two newly-purchased bonds as follows: Bond A, with par value...
80.2K
Verified Solution
Link Copied!
Question
Finance
A portfolio consists of two newly-purchased bonds as follows: Bond A, with par value of $100 and 5-year term, has annual coupons at 8%. Bond B, with par value of $200 and 2-year term, has semi-annual coupons at 3%. Each bond has annual yield of 5%. Calculate the duration, in years, of this portfolio at time of purchase. (A) 2.61 (B) 2.73 O OD) 2.85 O(E) 2.97 (C) 2.79
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
