The Century 22 fund has invested in a portfolio of mortgage-backed securities that has a current market value of $245 million. The duration of this portfolio of mortgaged back securities is 14.7 years
The fund has borrowed to purchase these securities, and the current value of its liabilities (i.e., the current value of the bonds Century 22 has issued) is $160 million. The duration of these liabilities is 5.4 years. What is the initial duration of the equity for the Century 22 fund?
Answer: DE = DA - L = ImageDA - ImageDL = Image(14.7) - Image(5.4) = 32.21 years
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Fill in the blank(s) with the appropriate word(s).
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____________ refers to companies going beyond their bottom line and economic interests to engage in activities that promote social well-being and environmental sustainability.
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