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Unformatted text preview: a. 1.5 b. 2.0 c. 2.6 d. 3.5 2) What is the contribution of Bond #2 to the duration of the bond portfolio? a. 1.0 b. 1.2 c. 1.4 d. 1.6 3) Reid’s bond portfolio is potentially exposed to: a. Spread risk b. Default risk c. Interest rate risk d. All of the above 4) Which of the following methods uses binomial interest rate trees to determine spread? a. Nominal spread b. Zero-validity spread c. Option-adjusted spread d. Treasury premium spread...
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This note was uploaded on 04/04/2012 for the course ECON 313 taught by Professor India during the Spring '12 term at University of San Francisco.
- Spring '12