Suppose that the initial value of an unlevered portfolio of


Question: Suppose that the initial value of an unlevered portfolio of Treasury securities is $200 million and the duration is 7. Suppose further that the manager can borrow $800 million and invest it in the identical Treasury securities so that the levered portfolio has a value of $1 billion. What is the duration of this levered portfolio?

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Accounting Basics: Suppose that the initial value of an unlevered portfolio of
Reference No:- TGS02576624

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