Security Analysis LIBER Page Five 30. Consider the use of Bond A and Bond B to immunize a portfolio. Bond A is a pure discount five year bond yielding 10%. Bond B is a 2 year 12% coupon bond yielding 12% with duration of 1.89 years. You are managing a $1,000,000 portfolio which you would like to immunize for 3 years. a) Find the current price of Bond A b) Find the current price of Bond B c) Find the duration of Bond A d) Find the percentages of your portfolio that you would invest in Bond A and Bond B respectively e) How many of each type of bond would be purchased? f) Compute the expected yield from the portfolio computed in part d VVEXTRA RODIT g) Compute the amount that the portfolio would grow into in three years assuming interest rates remain constant linnram shows what might happen to an investment of $80 in a risky portfolio Man there exists a risk free bond yielding 10% per time period. linealth, i.e. that of an insured portfolio. Using hould be undertaken (i.e. the mix of I lost $80