Bond X is a 4-year 5% bond priced at 93. Bond Y is a 5-year 7% bond priced at 105. Bond Z is a 3-year ZCB priced at 80. What is the yield of a portfolio with 50% in Bond X, 30% in Bond Y, and 20% in Bond Z? All bonds make semiannual coupon payments. Keep 4 decimal places as a percent,

Answer rating: 100% (QA)

To calculate the yield of a portfolio with different bonds we need to calculate the weighted average ... View the full answer