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As a bond trader, you are given $100,000 to invest and seek to maximize the value of your investment in 10 years. You are free

As a bond trader, you are given $100,000 to invest and seek to maximize the
value of your investment in 10 years. You are free to invest in any of the 6 U.S
zero-coupon treasuries listed in the table above today, and may rebalance your
portfolio once again in exactly 5 years. After this rebalancing, you must hold the
portfolio for the remaining 5 years.
You may assume the yield curve does not change over the entire 10 year
investment period. Note this implies that in 5 years, the 30-year zero-coupon
bond will be a 25-year zero-coupon bond with 3.0% yield-to-maturity, the 25-year zero-coupon bond will be a 20-year zero-coupon bond with 3.0% yield-to-maturity,
the 20-year zero-coupon bond will be a 15-year bond with 2.5% yield-to-maturity,
etc.
What is the maximum possible value of your investment after 10 years? Please
round your numerical answer to the nearest dollar.
image text in transcribed
Fry The precise yield-to-maturities for 6 tradable zero-coupon U.S. treasures are listed here: 30-year Bond 3.1% 25-year Bond 3.0% 20-year Bond 3.0% 15-year Bond 2.5% 10-year Note 2.5% 5-year Note 1.0% As a bond trader, you are given $100,000 to invest and seek to maximize the value of your investment in 10 years. You are free to invest in any of the 6 U.S. zero-coupon treasuries listed in the table above today, and may rebalance your portfolio once again in exactly 5 years. After this rebalancing, you must hold the portfolio for the remaining 5 years. You may assume the yield curve does not change over the entire 10 year investment period. Note this implies that in 5 years, the 30-year zero-coupon bond will be a 25-year zero-coupon bond with 3.0% yield-to-maturity, the 25-year Vab449632 2004 Que Find Exam zero-coupon bond will be a 20-year zero-coupon bond with 3.0% yield-to-maturity. the 20-year zero-coupon bond will be a 15-year bond with 2.5% yield-to-maturity etc. What is the maximum possible value of your investment after 10 years? Please round your numerical answer to the nearest dollar. Fry The precise yield-to-maturities for 6 tradable zero-coupon U.S. treasures are listed here: 30-year Bond 3.1% 25-year Bond 3.0% 20-year Bond 3.0% 15-year Bond 2.5% 10-year Note 2.5% 5-year Note 1.0% As a bond trader, you are given $100,000 to invest and seek to maximize the value of your investment in 10 years. You are free to invest in any of the 6 U.S. zero-coupon treasuries listed in the table above today, and may rebalance your portfolio once again in exactly 5 years. After this rebalancing, you must hold the portfolio for the remaining 5 years. You may assume the yield curve does not change over the entire 10 year investment period. Note this implies that in 5 years, the 30-year zero-coupon bond will be a 25-year zero-coupon bond with 3.0% yield-to-maturity, the 25-year Vab449632 2004 Que Find Exam zero-coupon bond will be a 20-year zero-coupon bond with 3.0% yield-to-maturity. the 20-year zero-coupon bond will be a 15-year bond with 2.5% yield-to-maturity etc. What is the maximum possible value of your investment after 10 years? Please round your numerical answer to the nearest dollar

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