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Question 8 3 pts You are an investment adviser for a client, who has $200,000 to invest for exactly 4.56 years. She states that
Question 8 3 pts You are an investment adviser for a client, who has $200,000 to invest for exactly 4.56 years. She states that the investment must be in default-free, non-callable bonds. She will pay you a commission based on how close her realized yield is to 9%. After a quick survey, you believe that the following investment opportunities are available (all annual coupon and compounding): You want to form a portfolio from bonds A and B such that this portfolio's duration is exactly 4.56 years; so that you can recommend the client to invest in this portfolio. Calculate the dollar amount that the client would need to invest in Bond A of this portfolio as per your advice. Round your answer to 2 decimal places. For example, if your answer is 25.689, please write down 25.69. Promised Current Bond Coupon Maturity YTM Price A 9% 4 9% 1000 B 9% 20 20 9% 1000
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