To Create a Portfolio with a Duration of 4 Years

question 10

Multiple Choice

To create a portfolio with a duration of 4 years using a 5-year zero-coupon bond and a 3-year 8% annual coupon bond with a yield to maturity of 10%, one would have to invest ________ of the portfolio value in the zero-coupon bond.

• A) 50%
• B) 55%
• C) 60%
• D) 75%

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Objective Probability

The likelihood of an event occurring based on factual data and statistical analysis rather than personal judgment or opinion.

Death Rates

The ratio of deaths in a particular population, location, or group to the total population, typically expressed per thousand or hundred thousand.

Business Leaders

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