Barry purchased three bonds to form a portfolio as follows:

Bond A has semi-annual coupons at 4%, a duration of 21.46 years, and was purchased for 980.

Bond B is a 15-year bond with a duration of 12.35 years and was purchased for 1015.

Bond C has a duration of 16.67 years and was purchased for 1000.

Calculate the duration of the portfolio at the time of purchase.

(A) 16.62 years

(B) 16.67 years

(C) 16.72 years

(D) 16.77 years

(E) 16.82 years

Answer rating: 100% (QA)

Answer The duration of a portfolio is the weighted average ... View the full answer