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| rev | Admin | (Created page with "'''Solution: B''' Because Bond A sold for its fact amount, the yield rate is the coupon rate of <math>6 \%</math> per year. The present values of the three bonds are: Bond A: 1000 (given) Bond B: <math>1000(1.06)^{-5}=747.26</math> Bond C: <math>1000(1.06)^{-10}=558.39</math> The durations are: Bond A: 7.8017 Bond B: 5 Bond C: 10 The portfolio duration is the average of these three durations, weighted by the bond prices. <math display="block"> \text { Duration }=\frac...") | Nov 20'23 at 17:06 | +571 |