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Suppose you are considering an investment in two bonds. Bond A has a duration of eight years and a market price of $950, and a
Suppose you are considering an investment in two bonds. Bond A has a duration of eight years and a market price of $950, and a bond B has a duration of four years and a market price of $1050. How should you invest $10 000 in these bonds if you have a desired holding period of seven years and wish to minimise interest rate risk?
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