Hi, can someone help explain the principles behind this question? FRM Exam 2004 Qn 45 With LIBOR at 4%, a manager wants to increase the duration of his portfolio. Which of the following securities should he acquire to increase the duration of his portfolio the most? a) a 10-year reverse floater that pays 8% - LIBOR, payable annually b) a 10-year reverse floater that pays 12% - 2 x LIBOR, payable annually c) a 10-year floater that pays LIBOR, payable annually d) a 10-years fixed rate bond carrying a coupon of 4% payable annually Ans b The duration of a floater is about zero. The duration of a 10-year regular bond is about 9 years. The first reverse floater has a duration of about 2 x 9 = 18 years, the second, 3 x 9 = 27 years. How do you get 18 and 27 years? Thks in advance!