What Is the Dollar Duration of the Following Portfolio

question 4

Short Answer

What is the dollar duration of the following portfolio:
i. Long a 2-year ?xed coupon bond paying 7% quarterly.
ii. Short three 1.25-year ?oating rate bonds paying ?oat plus 80 bps semiannually. You know that the reference rate was set at 7% six months ago.
iii. Short two 0.5-year zero coupon bonds.

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Definitions:

Squandered Resources

Resources that have been wasted or misused, often resulting in lost opportunities or damage.

Landscape Diversity

Variety of habitat elements within an ecosystem (e.g., plains, mountains, and rivers).

Species Diversity

A measure of biodiversity that refers to the variety of species within a particular region.

Bamboo Forests

Densely populated areas primarily made up of bamboo plants, which can be crucial for the ecosystem and wildlife, particularly pandas.