Solved

A Company Invests $1,000 in a Five-Year Zero-Coupon Bond and $4,000

Question 4

Multiple Choice

A company invests $1,000 in a five-year zero-coupon bond and $4,000 in a ten-year zero-coupon bond.What is the duration of the portfolio?

A) 6 years
B) 7 years
C) 8 years
D) 9 years

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