Question: If you construct a bond portfolio with five 6 % coupon ( semiannual payment ) , duration of 2 . 7 9 years, 3 -

If you construct a bond portfolio with five 6% coupon (semiannual payment), duration of 2.79 years, 3-year maturity bond sells at par ($1,000) and six 1-year zero coupon bond sells for $950.
(a) Calculate the portfolio duration.
(b) Calculate the yield for the portfolio.

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