Determining duration of the portfolio, Finance Basics

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Determining duration of the portfolio

1) The 6-month zero rate is 4% with semiannual compounding. The price of a 1-year bond that provides a coupon of 8% per annum semiannually is 98. What is the 1-year continuously compounded zero rate?

2) ABC company invests $2,000 in an 8-year zero-coupon bond and $4,000 in a 10-year zero-coupon bond. What is the duration of the portfolio?

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Finance Basics: Determining duration of the portfolio

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Finance Basics: Determining duration of the portfolio

Reference No:- TGS039177

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Advantages and two disadvantages of joint ventures

Q : Advantage-opportunities for trade between us and argentina

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Q : Favor of using electronic money

Q : Determining duration of the portfolio

Q : Determine the divisional income from operations

Q : Level of output-diminishing marginal productivity of labor

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Determining duration of the portfolio

Reference No:- TGS039177

Recent Questions Asked Finance Basics

Q : Advantages and two disadvantages of joint ventures

Q : Advantage-opportunities for trade between us and argentina

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Q : Determine the divisional income from operations

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