Considering an immunisation strategy in bond investment. Use a 5%, 3-year life treasury bond, semi-annual payment, 100
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Considering an immunisation strategy in bond investment. Use a 5%, 3-year life treasury bond, semi-annual payment, 100 par value, currently yielding at 3% as an example, to show how it can be immunised from a change in interest rate from 3% to 3.2% immediately after you purchase it today. You need to calculate holding period return (HPR) P.A.. by changing market interest rate and show the process of achieving immunisation.
Related Book For
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
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