A Portfolio Consists of Three Bonds as Follows What Is the Duration of the Bond Portfolio?
A) 7

question 62

Multiple Choice

A portfolio consists of three bonds as follows. $$\begin{array} { l c c } & \text { Amount Invested } & \text { Bond Duration } \\\hline \text { Bond X } & \$ 5,000 & 8.6 \text { years } \\\text { Bond Y } & \$ 4,000 & 4.2 \text { years } \\\text { Bond Z } & \$ 1,000 & 11.4 \text { years } \\\hline\end{array}$$ What is the duration of the bond portfolio?

• A) 7.12 years
• B) 8.07 years
• C) 8.69 years
• D) 11.4 years

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