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Basic Question 1 of 5

A portfolio consists of two bonds:

Bond | Maturity | Coupon | Duration | Proportion in Portfolio
Bond A | 10 years | 8% | 6.7 | 60%
Bond B | 7 years | 5.2% | 3.9 | 40%

Which of the following is the best measure of portfolio duration?

A. 3.71
B. 5.3
C. 5.58

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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

calculate portfolio duration and convexity and explain the limitations of these measures

CFA® 2024 Level I Curriculum, Volume 4, Module 12.