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3. A) What are the major risks for institutional investors investing in bonds? 1. Calculate the duration of the bonds from question 1, and explain

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3. A) What are the major risks for institutional investors investing in bonds? 1. Calculate the duration of the bonds from question 1, and explain what it means. (Hint: use the way shown in Excel file, duration, F4 down.) Bond 01 duration = ; Bond 02 duration = 2. Describe immunization, in general and for each of the previous bonds, and explain how it is used by institutional bond investors. 3. A) What are the major risks for institutional investors investing in bonds? 1. Calculate the duration of the bonds from question 1, and explain what it means. (Hint: use the way shown in Excel file, duration, F4 down.) Bond 01 duration = ; Bond 02 duration = 2. Describe immunization, in general and for each of the previous bonds, and explain how it is used by institutional bond investors

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