A portfolio consists of 2 bonds, each of which has monthly coupons: -3-year bond with face amount

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A portfolio consists of 2 bonds, each of which has monthly coupons:

-3-year bond with face amount $99800 and 6% annual coupon rate paid monthly

-6-year bond with face amount $70600 and 12% annual coupon rate paid monthly

Find the Macaulay duration of this portfolio of bonds if the term structure is flat with an annual interest rate of 12% convertible monthly.

Related Book For answer-question

Basic Finance An Introduction to Financial Institutions Investments and Management

ISBN: 978-1111820633

10th edition

Authors: Herbert B. Mayo

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Posted Date: Mar 16, 2022 04:35 AM

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A portfolio consists of 2 bonds, each of which has monthly coupons: -3-year bond with face amount

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Calculation of Macaulay Duration For 3 Years Bond Coupon ... View the full answer

Basic Finance An Introduction to Financial Institutions Investments and Management

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