Consider a portfolio consisting of a 50-50 weighting of Zero-Coupon Bonds of €100 each, one at year 1 and the other at y
Posted: Sun May 08, 2022 10:45 am
Consider a portfolio
consisting of a 50-50 weighting of Zero-Coupon Bonds of €100 each,
one at year 1 and the other at year 2. As the discount
rate tends to zero, the duration tends tends to ______ years.
As the discount rate increases, the duration tends to____
years.
0.5; 1.5
2;0
0;2
1.5; 1
consisting of a 50-50 weighting of Zero-Coupon Bonds of €100 each,
one at year 1 and the other at year 2. As the discount
rate tends to zero, the duration tends tends to ______ years.
As the discount rate increases, the duration tends to____
years.
0.5; 1.5
2;0
0;2
1.5; 1