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Suppose we have two zero-coupon (discount) bond ($1000 face value) with remaining time of 1 year and 4 year as the liabilities. Hypothetically how can
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In order to immunize against interest rate risk under a bullet strategy you would typically need a single bond whose maturity matches the duration of ...Get Instant Access to Expert-Tailored Solutions
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Macroeconomics
Authors: Charles I. Jones
3rd edition
978-0393123944, 393123944, 393923908, 978-0393923902
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