Intro You're the corporate treasurer and have to pay $40 million in 2.8 years. You want to remove any interest rate risk and have identified two bonds to invest in: 1. a zero-coupon bond with 1 year to maturity, 2. a corporate bond with 4 years to maturity, annual coupons and a coupon rate of 3%. The market interest rate is 5% (EAR) for all maturities. 18 Attempt 1/10 for 10 pts. Part 1 What is the price of the coupon bond (in $)? 0+ decimals Submit Part 2 | Attempt 1/10 for 10 pts. What is the duration of the coupon bond? 2+ decimals Submit IB Attempt 1/10 for 10 pts. Part 3 What is the duration of the zero-coupon bond? 0+ decimals Submit | Attempt 1/10 for 10 pts. Part 4 If you want to immunize, what fraction of your assets should you invest in the coupon bond? Enter your answer as a decimal number or with the percentage sign. 2+ decimals Submit BAttempt 1/10 for 10 pts. Part 5 What is the present value of your liability (in $ million)? 1+ decimals Submit Part 6 | Attempt 1/10 for 10 pts. If you want to immunize, how much money should you invest in the coupon bond (in $ million)? 1+ decimals Submit Intro You're the corporate treasurer and have to pay $40 million in 2.8 years. You want to remove any interest rate risk and have identified two bonds to invest in: 1. a zero-coupon bond with 1 year to maturity, 2. a corporate bond with 4 years to maturity, annual coupons and a coupon rate of 3%. The market interest rate is 5% (EAR) for all maturities. 18 Attempt 1/10 for 10 pts. Part 1 What is the price of the coupon bond (in $)? 0+ decimals Submit Part 2 | Attempt 1/10 for 10 pts. What is the duration of the coupon bond? 2+ decimals Submit IB Attempt 1/10 for 10 pts. Part 3 What is the duration of the zero-coupon bond? 0+ decimals Submit | Attempt 1/10 for 10 pts. Part 4 If you want to immunize, what fraction of your assets should you invest in the coupon bond? Enter your answer as a decimal number or with the percentage sign. 2+ decimals Submit BAttempt 1/10 for 10 pts. Part 5 What is the present value of your liability (in $ million)? 1+ decimals Submit Part 6 | Attempt 1/10 for 10 pts. If you want to immunize, how much money should you invest in the coupon bond (in $ million)? 1+ decimals Submit