Question
A company has 3 future liabilities of 1000 at time 2, 1200 at time 4 and 1000 at time 6. The only investment vehicles available
A company has 3 future liabilities of 1000 at time 2, 1200 at time 4 and 1000 at time 6.
The only investment vehicles available are one-year zero-coupon bonds and five-year Zero-coupon bonds. If the interest rate is 10%, how much money should be invested in each bond to achieve local immunization?
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Principles Of Financial Accounting
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st Edition
0077525264, 978-0077525262
