A bond portfolio contains the following holdings

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Reference no: EM131619366

A bond portfolio contains the following holdings:

$2 million par value of 10-year bonds with a modified duration of 6.95, priced at 95.5% of par

$3 million par value of 15-year bonds with a modified duration of 9.77, priced at 88.6275% of par

$5 million par value of 30-year bonds with a modified duration of 14.81, priced at 114.875% of par

The portfolio’s modified duration is closest to:

A 10.6.

B 12.1.

C 13.3.

D 13.6.

Reference no: EM131619366

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