Bond portfolio-average maturity

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Bond Portfolio A has an average maturity of 12 years and has a Duration of 10.1 years. Bond Portfolio B has an average maturity of 9 years and 11 months and has a Duration of 7.6 years. Which of the two would you invest in if you were investing a very large sum of money that would be needed in 10 years for a very important payment? Please explain your choice. In doing so, note which characteristic of the bond you chose is important.

Reference no: EM131553819

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