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17. Given the following information, we need to determine a cash flow matched portfolio using the universe of available bonds: Year of June 30 cash
17. Given the following information, we need to determine a cash flow matched portfolio using the universe of available bonds: Year of June 30 cash flow Liability amount Year of June 30 bond maturity Annual coupon Effective annual yield 2015 25 2015 10.0% 5.0% 2016 20 2016 7.5% 5.5% 2017 15 2017 65% 6.5% 2018 10 2018 5.0% 6.5% 2019 5 2019 4.0% 6.5% How much of the bonds maturing in 5 years and 1.5 years should be bought if the company wants to imunize itself using an exact matching of assets and liabilities strategy? Given the following information, we need to determine a cash flow matched portfolio using the univene of available bonds: How much of the bonds maturing in 5 years and is years should be bought if the company wants to imunize itself using an exact matching of assets and liabilities strategy
17. Given the following information, we need to determine a cash flow matched portfolio using the universe of available bonds: Year of June 30 cash flow Liability amount Year of June 30 bond maturity Annual coupon Effective annual yield 2015 25 2015 10.0% 5.0% 2016 20 2016 7.5% 5.5% 2017 15 2017 65% 6.5% 2018 10 2018 5.0% 6.5% 2019 5 2019 4.0% 6.5% How much of the bonds maturing in 5 years and 1.5 years should be bought if the company wants to imunize itself using an exact matching of assets and liabilities strategy?
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