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help me to solve by using M.Excel and show the formula as well. thank you in advanced! Question 3 Alexa has liabilities of RM540.00 at
help me to solve by using M.Excel and show the formula as well. thank you in advanced!
Question 3 Alexa has liabilities of RM540.00 at the end of year 1 and RM1,166.40 at the end of year 2. Under the immunization technique, Alexa has set up an investment fund to meet these obligations using money market earning 8% currently with the rate changing daily and 3 year zero coupon bond also earning 8%. Determine the modified duration and convexity of Alexa's asset portfolio. [Hint: calculate the price for each assets first] (15 Marks) Question 3 Alexa has liabilities of RM540.00 at the end of year 1 and RM1,166.40 at the end of year 2. Under the immunization technique, Alexa has set up an investment fund to meet these obligations using money market earning 8% currently with the rate changing daily and 3 year zero coupon bond also earning 8%. Determine the modified duration and convexity of Alexa's asset portfolio. [Hint: calculate the price for each assets first] (15 Marks)Step by Step Solution
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