What Is the Dollar Duration of the Following Portfolio

question 8

Essay

What is the dollar duration of the following portfolio:
i. Long a 1-year ?xed coupon bond paying 4% quarterly.
ii. Long a 1.75-year ?oating rate bond paying ?oat plus 80 bps semian- nually. You know that the reference rate was set at 6% six months ago.
iii. Short a 2-year zero coupon bond. 10

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Definitions:

Nonverbal Communication

The process of conveying a message without the use of words, through gestures, facial expressions, and body language.

Skills Generalization

The process by which a person learns to apply learned skills in different situations or contexts.

Expressed Emotion

A measure of the family environment based on how family members speak about the individual with a mental illness, marked by criticism, hostility, or emotional over-involvement.

Relapse

The return of signs and symptoms associated with a condition or disease after a period of improvement or recovery.