Question: could u plz help me with this question As portfolio manager, you received $200 million from a new client to invest. The investment guidelines established

could u plz help me with this question

could u plz help me with this question As portfolio manager, you

As portfolio manager, you received $200 million from a new client to invest. The investment guidelines established by the client allow the manager to leverage the portfolio up to 25% of the $200 million, or $50 million. The investment guidelines impose a restriction that the portfolio's duration does not exceed 5. You invested the $200 million in bonds with a duration of 4. You then used the maximum permissible leverage and purchased $50 million of bonds with duration of 5 via 1-month repo transaction. What is the duration of the client's portfolio? 4.0 4.2 4.25 5.0 5.25

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