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Can you please write down the solutions on paper? Don't use excel. Assume the following yield curve for zero-coupon bonds: Maturity 1 year 2 years

Can you please write down the solutions on paper? Don't use excel.

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Assume the following yield curve for zero-coupon bonds: Maturity 1 year 2 years 3 years 4 years 5 years Yield 5% 6% 7% 8% 9% a) (5 Marks) What is Macaulay's duration of each of the bonds? b) (5 Marks) Assume that your investment horizon is 3 years and you want to buy bonds with 1-year and 4-year maturities. What is percentage of 1-year and 4-year bonds to assure a fully immunized portfolio

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