12. Consider three bonds: X, Y, and Z. Bond X has a yield of 8% and a...

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12. Consider three bonds: X, Y, and Z. Bond X has a yield of 8% and a maturity of 5 years; it can be held in one portfolio, called a bullet portfolio. Bonds Y and Z have 3 and 8 years to maturity and yields to maturity of 7% and 8%, respectively.

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