If a Financial Institution Has 50% of Its Portfolio in a Bond

question 58

Multiple Choice

If a financial institution has 50% of its portfolio in a bond with a five-year duration and 50% of its portfolio in a bond with a seven-year duration,what is the duration of the portfolio?

• A)12 years
• B)7 years
• C)6 years
• D)5 years

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Definitions:

Chromatin Strands

Fibers made of DNA and proteins (histones) that tightly pack together to form chromosomes within the nucleus of a cell.

Cytokinesis

Division of the cytoplasm during cell division.

Internal Membrane Surface

This refers to the surface area within a cell that is bounded by the cell's internal membranes, such as those of the endoplasmic reticulum or mitochondria.

Membrane Channel Protein

Proteins that form pores in the cell membrane allowing the selective passage of ions and molecules in and out of cells.