Find the portfolios macaulay duration


Problem

Consider a portfolio consisting of a zero-coupon bond and $4,000 in cash. The bond has a face value of $10,000, it trades to yield 5% and matures in 20 years. Assume annual compounding. Find the portfolio's Macaulay duration (also known as "Duration in years" or simply as "Duration"). Express your answer in years with two digits after the decimal point.

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Finance Basics: Find the portfolios macaulay duration
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