Chartered Financial Analyst Level 1

Chartered Financial Analyst Level 1

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A bond portfolio consists of the following option-free annual-pay coupon bonds: Bond 1 Bond 2 Par value 300,000300,000 450,000 Market value 200,000200,000 400,000 Yield to maturity 4% 3% Macaulay duration 7.5 5.4 The modified duration of this portfolio is closest to: