Vanhusen remarks to kapple if you changed the maturity


VanHusen remarks to Kapple, "If you changed the maturity structure of the bond portfolio toresult in a portfolio duration of 5.25, the price sensitivity of that portfolio would be identicalto the price sensitivity of a single, noncallable Treasury security that has a duration of 5.25." In what circumstance would VanHusen's remark be correct?

Request for Solution File

Ask an Expert for Answer!!
Corporate Finance: Vanhusen remarks to kapple if you changed the maturity
Reference No:- TGS01196292

Expected delivery within 24 Hours