-) Assume you bought two ETFs for the trading simulation. The first ETF trades at a price of $50 given a TM of 5.00% and has a weighted average coupon of 3.50%, a weighted average maturity of 5.5 years and a modified duration of 4.5 years. The second ETF trades at a price of $100 given a YTM of 6.00% and has a weighted average coupon of 4.50%, a weighted average maturity of 10.0 years and a modifie duration of 9.0 years. What number below is the portfolio's duration? a) 6.8 years b) 7.5 years c) 7.8 years d) 8.5 years

-) Assume you bought two ETFs for the trading simulation. The first ETF trades at a price of $50 given a TM of 5.00% and has a weighted average coupon of 3.50%, a weighted average maturity of 5.5 years and a modified duration of 4.5 years. The second ETF trades at a price of $100 given a YTM of 6.00% and has a weighted average coupon of 4.50%, a weighted average maturity of 10.0 years and a modifie duration of 9.0 years. What number below is the portfolio's duration? a) 6.8 years b) 7.5 years c) 7.8 years d) 8.5 years

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter6: Risk And Return

Section: Chapter Questions

Problem 14P

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