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A portfolio manager uses her valuation model to estimate the value of a bond portfolio at USD 125.482 million. The term structure is flat. Using the same model, she estimates the value of the portfolio if interest rates change by 100 basis points (either up or down). The estimated values are USD 120.345 million (when rates increase) and USD 130.876 million (when rates decrease). What is the approximate effective duration of the portfolio?
A
5.00
B
5.25
C
5.50
D
5.75