The Duration of a Portfolio of Bonds Can Be Calculated

question 45

Multiple Choice

The duration of a portfolio of bonds can be calculated as ________.

• A) the coupon weighted average of the durations of the individual bonds in the portfolio
• B) the yield weighted average of the durations of the individual bonds in the portfolio
• C) the value weighted average of the durations of the individual bonds in the portfolio
• D) averages of the durations of the longest- and shortest-duration bonds in the portfolio

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Definitions:

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A formal request filed by an individual or business entity to declare bankruptcy, initiating the legal process to discharge or reorganize debt.

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A person or entity that owes money to another.

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