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please answer all aspects of the question and use the attached excel ws 3) Suppose you are planning to invest $750,000 into a portfolio of

please answer all aspects of the question and use the attached excel ws
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3) Suppose you are planning to invest $750,000 into a portfolio of bonds for the purposes of generating current income. You've selected 6 bonds from which you would like to build your portfolio Bond A Bond B Bond C Bond D Bond E Bond F Return Term to Maturity (years) Credit Quality (1=Excellent, 2-Very Good, 3=Good, 4=Fair) 8,65% 11 1 9.50% 10 3 10.00% 6 4 8.75% 10 1 9.25% 7 3 9.00% 13 2 Now assume that for purposes of diversification, you've decided that no more than 25% of your capital should be invested in any one bond. Further, you believe that at least half of your funds should be invested in longer-term bond maturing in 10 of more years. Finally, although bonds B, C, and e offer the highest promised returns, they are the riskiest of the 6 bonds. As such, you've decided than no more than 35% of your funds should be invested in any combination of these higher risk bonds Develop a model for maximizing the expected income to be derived from this portfolio while satisfying your stated risk constraints. How much income would you expect to earn? r BE Ford ME

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