Use the Following Discount Factors When Needed

question 13

Short Answer

Use the following discount factors when needed.
-Calculate the duration of the following portfolio:
i. 5 units of a 2-year ?xed rate bond paying 6% quarterly.
ii. 2 units of a 1.75-year ?oating rate bond paying ?oat + 80 bps semi- annually. You know that the reference rate was 6.5% three months ago.
iii. 6 units of a 1-year zero coupon bond.
iv. 5 units of a 1.5-year ?oating rate bond with no spread paid semian- nually.

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Definitions:

Property Qualification

Historical voting or office-holding requirement that mandated individuals own a certain amount of property or land to participate in the political process.

Suffrage

The right to vote in political elections, often highlighted in historical contexts around movements to extend this right to various groups.

Linked With Freedom

Suggestively associated with the concept or state of being free, possibly pertaining to movements, ideologies, or historical events advocating for liberty.

Revolution

A fundamental and relatively quick change in political power or organizational structures that takes place when the population revolts against existing authorities.