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Securities A, B, and C have the following cash flows: (Ignore taxes) a. Calculate their durations if the interest rate is 10%. b. Suppose that
Securities A, B, and C have the following cash flows: (Ignore taxes) a. Calculate their durations if the interest rate is 10%. b. Suppose that you have an investment of $11.2 million in A. What combination of B and C would hedge this investment aga interest rate changes? c. Now suppose that you have a $11.2 million investment in B. How would you hedge? Answer is not complete. Complete this question by entering your answers in the tabs below. Suppose that you have an investment of $11.2 million in A. What combination of B and C would hed ge this investment against interest rate changes? Note: Enter your numeric answers as a positive value. Do not round intermediate calculations. Enter your numeric answers in
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