Using Macaulay Duration, determine the duration of Bond B if Bond A and B (market value of 600 000 dollars and 400 000 dollars respectively) have a duration of 6.7 years and the duration of A is 8.5 years.
Since duration looks at the time of maturity of the bond prices, Bond A and B's duration will be inter-linked. Hence, I will be able to write µ(ab) ≠ µ(a) or µ(b).
But if that is the case, then I would be unable to draw a link to the two equations between Bond A and B and Bond A?
Is my thinking correct in finding duration of Bond B?