I have a question related to the market values of the bonds!
From this photo, they calculate:
The market values of the bonds (Price × Par amount)
How should i understand?
Thanks in advance.
The following table provides information about a portfolio of three bonds.
Based on this information, the duration of the portfolio is closest to:
B is correct. The market values of the bonds (Price × Par amount) are $17,479,376, $4,018,928, and $6,771,416, respectively, for a portfolio value of $28,269,720.