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What is the duration of your bond portfolio if you invest 30% of your portfolio in...

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Finance

What is the duration of your bond portfolio if you invest 30% ofyour portfolio in a bond with a duration of 12.2 (let’s denote itBA), 30% in a 20-year zero-coupon bond (let’s denote it BZ), and40% in a 3-year bond with a 12% annual coupon, par value of $1000,and a yield to maturity of 7% (let’s denote it BB)? 10.74 years12.5 years 9.3 years 4 years

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Duration of bond portfolio is its weightage average of its bonds duration Duration of bond portfolio proportion of bond BA in portfolio Duration of Bond BA proportion of bond BZ in portfolio Duration of Bond BZ proportion of bond BB in    See Answer
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What is the duration of your bond portfolio if you invest 30% ofyour portfolio in a bond with a duration of 12.2 (let’s denote itBA), 30% in a 20-year zero-coupon bond (let’s denote it BZ), and40% in a 3-year bond with a 12% annual coupon, par value of $1000,and a yield to maturity of 7% (let’s denote it BB)? 10.74 years12.5 years 9.3 years 4 years

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