- 8 A Describe The Two Assumptions Underlying The Duration Equation We Learn In Class B Alexa Notices That When The 1 (38.32 KiB) Viewed 47 times
8. (a) Describe the two assumptions underlying the duration equation we learn in class. (b) Alexa notices that when the
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8. (a) Describe the two assumptions underlying the duration equation we learn in class. (b) Alexa notices that when the
8. (a) Describe the two assumptions underlying the duration equation we learn in class. (b) Alexa notices that when the level of interest rates go up by 20 basis points, the value of her fixed income portfolio goes down by 4%. What does this imply about the duration of her fixed income portfolio? (c) If the value of Alexa's portfolio is $500,000, what is the DVBP of her portfolio? (3 pts)
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