How many of the 2-year bonds would you need

Reference no: EM13259242

The duration of a 10-year bond is 8.75 and the duration of a 2-year bond is 1.25. Both bonds are priced at par. How many of the 2-year bonds would you need to own to have the same interest rate sensitivity as one 10-year bond?

Reference no: EM13259242

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