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Assume the yield to maturity is 3 . 1 for half year, 3 . 4 % for 1 year, 3 . 8 % for 2
Assume the yield to maturity is for half year, for year, for years, and for years. Suppose you want to invest million dollars in the riskfree bonds in year and get repaid in year what could you do to fix the investment return? Show the cash flows associated with your investment strategy.
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