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All neccesary information is included on the image, please answer with excel equations. 2 3 10 11 13 18 The yield curve today is as
All neccesary information is included on the image, please answer with excel equations.
2 3 10 11 13 18 The yield curve today is as follows: Maturity in years Yield 5% 5.50% 6% 7% Your company expects to receive S5m at the end of the first year and is planning to invest the money in 3-year bonds. You are asked to design a trading strategy to lock in the retum of this investment today. Describe the trades you should make today. You must include the correct amounts in the description. Position 1 Position 2 What will be the guaranteed annual retum on the 3-year investment?
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