An investor owns two bonds. He owns $30,000 of a bond which matures in 10 years and

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An investor owns two bonds. He owns $30,000 of a bond which matures in 10 years and has a Macaulay Duration of 8 years. He also owns $20,000 of another bond which matures in 4 years and has a Macaulay Duration of 3 years.

Compute the Macaulay Duration of the bond portfolio in total.

Related Book For answer-question

Calculus

ISBN: 9781285057095

10th Edition

Authors: Ron Larson, Bruce H. Edwards

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Posted Date: Sep 06, 2023 02:11 AM

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An investor owns two bonds. He owns $30,000 of a bond which matures in 10 years and

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To compute the Macaulay Duration of a bond portfolio you can use the weighted average of the Macaula... View the full answer

Calculus

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