# Schweser Volume 1 Exam 2 PM question 17.4

The solution to the problem does not explain why the duration of the fixed side is 3.75 and the floating side is 0.25. i dont see how i’m supposed to have been able to figure that out with the info given. what am i missing?

i don’t have the question with me , but i recall them giving you some information in the question. wasn’t it that the fixed was 75% of the maturity or something? as for floating, it is simply one half the payment frequency. Since it is .25 in the answer. the frequency must have been semi-annually.

thanks, i actually didnt know that about calc’ing the floating side dur (that might make me a dumbass, i’m not sure) in the problem, the guy states that the duration of the fixed side should be 75% of the maturity, as if that was something we were already supposed to know with the info given (the answer to the problem is that his statement is “correct”) is there any rule of thumb for knowing what the duration of the fixed side is, the way there is with floating? Thanks.