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Part one. 1. Suppose that you are tasked with managing a liability of $5,000 worth of 6% 4-year, annual coupon bonds when the interest rate
Part one. 1. Suppose that you are tasked with managing a liability of $5,000 worth of 6% 4-year, annual coupon bonds when the interest rate is 4.5%. You want to minimize the interest rate risk by immu...
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