Question: c suppose that the security in a is a liability and you want to hedge against small interest rate exchanges The two securities available to

c suppose that the security in a is a liability and you want to hedge against small interest rate exchanges The two securities available to you are a 1year zero coupon bond and a 2year zero coupon bond and in addition to hedging against small interest rate changes you also want to set up the portfolio so that the value of your assets is equal to the value of your liabilities set up the equations needed to solve for positions in the 1 year and 2 year zero coupon bonds

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