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Business, 29.04.2021 19:00 brittanysanders

A company has liabilities of $10,000 due in 1 year and $20,000 due in 2 years. They would like to invest a portion of the portfolio in a zero coupon bond that matures in 1.5 years and the remainder in a zero coupon bond that matures in 4 years. The company would like to purchase the bonds such that the portfolio will be immunized assuming an effective interest rate of 4%. How much should be invested in the 1.5 year zero coupon bond

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A company has liabilities of $10,000 due in 1 year and $20,000 due in 2 years. They would like to in...
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