Considering adding the above coupon paying bond

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1) A 10% coupon bond maturing in 2 years is selling at $1,040. What is the duration of this bond? (in years)

B. You are considering adding the above coupon paying bond and a zero coupon bond to your portfolio. The zero coupon bond has a duration of 30 years. If your portfolio is 30% the coupon paying bond and 70% the zero coupon bond, what is the duration of your portfolio? (in years)

Reference no: EM131850186

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