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The insurance company collected $6,000,000 in insurance premiums against these liabilities. The insurance company is considering to invest in 6-year zero coupons bond and a

The insurance company collected $6,000,000 in insurance premiums against these liabilities. The insurance company is considering to invest in 6-year zero coupons bond and a 10 years zero coupon bond where each has a $1000 face value. Determine the following in the yellow highlighted cells.
Bond/Maturity Interest rate # of bonds to buy Bond Value Total $ investment
6 0.06
10 0.074
Total Investment
If the spot rates increases by 0.25%, the current value of your bond investment
A remains the same
B declines
C increases
D depends on other bond features

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