Hi Guys, I was attempting the CFAI end of chapter problem # 10 for reading 29. I do not understand the calc. Can anybody help ??!!
How do you find the new portfolio value ?
100.40625*4.53=dollar duration of 5 year 109.09375*8.22=dollar duration of 10 year New value = (100.40625*4.53/109.09375*8.22)*10,000,000
Thanks a lot. I got it now.