What is the weighted average life for a 5% bond with a 4 year maturity?
If current market interest rates are 8%, what is the duration of the bond above?
What is the duration of a 30-year zero bond when current market interest rates are 6%?
You have a portfolio with an average duration of 6.5 years and a value of $1 million. If interest rates rise by 150 basis points, what will be the approximate value of your portfolio if you make no changes?