haha
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Hi- I looked over my friend's portfolio and I am puzzled by the difference direction in weighted average maturity of this fund, and its duration. It's a managed municipal bond fund, FHIGX-Fidelity Municipal Income Fund. The Fidelity website lists its weighted average maturity as 6.10 years, and its duration as 7.2 years, both figures as of 3/31/2013.
What gives? With straight taxable bonds, in my limited experience a zero will have a duration equal to its time to maturity, and bonds paying interest will be shorter duration than this, relative to maturity date.
I have little experience with municipals, or mutual funds so I don't know what I don't know here.
Can someone explain what seems to me to be a paradox?
Ha
What gives? With straight taxable bonds, in my limited experience a zero will have a duration equal to its time to maturity, and bonds paying interest will be shorter duration than this, relative to maturity date.
I have little experience with municipals, or mutual funds so I don't know what I don't know here.
Can someone explain what seems to me to be a paradox?
Ha