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A firm has a liability of $ 10,000,000 that needs to be paid in five years. The firm can invest in either or both of
A firm has a liability of $ 10,000,000 that needs to be paid in five years. The firm can invest in either or both of two zero-coupon bonds, one with three years to maturity and one with ten years to maturity. What dollar value of each bond can be purchased to immunize the firm to interest rate changes if the yield curve is flat at 8%?
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Financial Reporting Financial Statement Analysis And Valuation
Authors: James M Wahlen, Stephen P Baginskl, Mark T Bradshaw
10th Edition
0357722094, 978-0357722091
