Question: For an upvote full working must be shown, and each step of the calculation must be correct. Then the final answer must be correct to
For an upvote full working must be shown, and each step of the calculation must be correct. Then the final answer must be correct to the decimal place.
Today is July Joan has a portfolio which consists of two different types of financial instruments henceforth referred to as instrument A and instrument B Joan purchased all instruments on July
to create this portfolio and this portfolio is composed of units of instrument A and units of instrument
Instrument A is a zerocoupon bond with a face value of This bond matures at par. The maturity date is January
Instrument B is a Treasury bond with a coupon rate of pa and face value of This bond matures at par. The maturity date is January
c What is the current duration of instrument Express your answer in terms of years and round your answer to three decimal places. Assume the yield rate is pa
a
b
c
d
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