Suppose you own a portfolio containing 50 units of bond A and 60 units of bond B.

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Suppose you own a portfolio containing 50 units of bond A and 60 units of bond B. Bond A has a price of $100 and a duration of 10. Bond B has a price of $130 and a duration of 5.

a) What is the $duration of bond A?

b) What is the $duration of bond B?

Related Book For answer-question

Principles of Macroeconomics

ISBN: 978-0134078809

12th edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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Posted Date: Feb 13, 2024 02:19 AM

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Suppose you own a portfolio containing 50 units of bond A and 60 units of bond B.

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The detailed answer for the above question is provided below a The duration of bond A is 10 b Th... View the full answer

Principles of Macroeconomics

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