now the following about your client’s fixed income portfolio. The portfolio is worth $1,600,000. Currently, the portfolio has $700,000 invested in 3-year 5.5% coupon bonds, each with a face value of $1000, with annual coupons, and $900,000 invested in a long-term bond fund which has a duration of 12.4 years. The yield curve is currently flat at 4.5% per year. What is the duration of your client’s portfolio? Group of answer choices 8.22 years 7.14 years 7.75 years 10.91 years

now the following about your client’s fixed income portfolio. The portfolio is worth $1,600,000. Currently, the portfolio has $700,000 invested in 3-year 5.5% coupon bonds, each with a face value of $1000, with annual coupons, and $900,000 invested in a long-term bond fund which has a duration of 12.4 years. The yield curve is currently flat at 4.5% per year. What is the duration of your client’s portfolio? Group of answer choices 8.22 years 7.14 years 7.75 years 10.91 years

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 4P

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