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Business, 03.07.2020 03:01 brattymoo1009

The following bonds and liabilities are given: • Bond A: A zero-coupon bond with a face value of $100 and a time to maturity of 3 years. • Bond B: A zero-coupon bond with a face value of $100 and a time to maturity of 12 years. • Liability X: A one-time liability maturing in 4 years with the present value of $100. • Liability Y: A one-time liability maturing in 8 years with the present value of $100. Suppose you have both liabilities X and Y and want to immunize your liabilities using bonds A and B. What would be the weights of two bonds in your immunizing bond portfolio? Please round your calculation to the nearest 2nd decimal. Select one: A. 30% in Bond A and 70% in bond B B. 67% in Bond A and 33% in bond B C. 50% in Bond A and 50% in bond B D. 33% in Bond A and 67% in bond B E. 70% in Bond A and 30% in bond B

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The following bonds and liabilities are given: • Bond A: A zero-coupon bond with a face value of $10...
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