Question: The answer is 16 years Please show step by step and formulas used. Problem 54.19 John purchased three bonds to form a portfolio as follows:

The answer is 16 years Please show step by step and

The answer is 16 years

Please show step by step and formulas used.

Problem 54.19 John purchased three bonds to form a portfolio as follows: Bond A is purchased for X and has a duration of 20 years. Bond B is purchased for Y and has a duration of 20 years. Bond C is purchased for X + Y. The duration (in years) of the portfolio at the time of purchase is 18. Deter- mine the duration (in years) of Bond C at the time of purchase

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