What Is the Duration of the Following Portfolio

question 15

Essay

What is the duration of the following portfolio?
i. Long a 1.5-year zero coupon bond.
ii. Short a 2-year ?xed coupon bond paying 1% quarterly.

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Definitions:

Neural Connections

The links between neurons through which they communicate, allowing for the transmission of electrical or chemical signals across the nervous system.

Vertebrate

Organisms with backbones or spinal columns, including mammals, birds, reptiles, amphibians, and fish.

Vagus

Referring to the vagus nerve, which is the tenth cranial nerve and is involved in the parasympathetic control of the heart, lungs, and digestive tract.

Facial Nerve

The seventh cranial nerve that controls the muscles of facial expression, taste sensations from the front two-thirds of the tongue, and other functions.