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an investment strategy used to minimize the interest rate risk of bond investments o duration to match the investor's investment time horizon. An investor plans

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an investment strategy used to minimize the interest rate risk of bond investments o duration to match the investor's investment time horizon. An investor plans current portfolio has a value of SImillion. He wants to use the following two 9. B by adjusting the portfoliod to retire in 5 years. His using the folweth interest rate risk. How could he implement the bond immunization strategy using the following bond s to neutrl s? YTM,-YTMB-8%. (5 points) Bond A: o coupon, 5 years to maturity, Duration 8% coupon, 8 years to maturity, Duration 4 years 6 years 9% Bond B. 80 Coupon, s Bond B: an investment strategy used to minimize the interest rate risk of bond investments o duration to match the investor's investment time horizon. An investor plans current portfolio has a value of SImillion. He wants to use the following two 9. B by adjusting the portfoliod to retire in 5 years. His using the folweth interest rate risk. How could he implement the bond immunization strategy using the following bond s to neutrl s? YTM,-YTMB-8%. (5 points) Bond A: o coupon, 5 years to maturity, Duration 8% coupon, 8 years to maturity, Duration 4 years 6 years 9% Bond B. 80 Coupon, s Bond B

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