What Is the Dollar Duration of the Following Portfolio

question 14

Essay

What is the dollar 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:

Autism Spectrum Disorder

A developmental disorder characterized by difficulties with social interaction and communication, and by restricted or repetitive patterns of thought and behavior.

Repetitive Patterns

Recurring sequences or configurations in data, behavior, processes, or structures.

Echolalia

Communication abnormality in which an individual simply repeats back what he or she hears rather than generating his or her own speech.

Intonating Pitch

The modulation or variation of pitch in speech to convey meaning or express emotion.