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Business, 27.04.2021 14:30 nikkiebartels

An investor creates a portfolio with two bonds, each with a par value of $1,000. You are given: The first bond matures in 3 years. The first bond has an annual effective yield of 3%. The first bond pays annual coupons of 4%. The second bond matures in 5 years. The second bond has an annual effective yield of 6%. The second bond is a zero coupon bond. Calculate the modified duration of the portfolio.

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An investor creates a portfolio with two bonds, each with a par value of $1,000. You are given: The...
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