You are given a portfolio consisting of two bonds find the


You are given a portfolio consisting of two bonds:

• 60% of the portfolio is invested in a two-year coupon bond, for which a unit of it has an annual coupon of 15%, with par and redemption value of $100, currently selling for $93.50

and

• 40% of the portfolio is invested in a zero-coupon bond for which a unit of it will pay $100 in four years exactly, with a price of such a unit today of $49.51.

Find the duration of this portfolio.

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Financial Management: You are given a portfolio consisting of two bonds find the
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