Question
Consider the following bond portfolio: Bond Value Maturity Coupon Yield ----------------------------------------------------------------------------- A $300 million 3 years 0% 10% B 300 4 6 10 C 400
Consider the following bond portfolio:
Bond Value Maturity Coupon Yield
-----------------------------------------------------------------------------
A $300 million 3 years 0% 10%
B 300 4 6 10
C 400 8 0 10
c) Suppose the portfolio is to be immunized over an investment horizon of approximately 5.19 years. Determine the market value of the immunized portfolio at the end of 5.19 years?
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
7th Edition
007331465X, 978-0073314655
