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The investment period of ABC investment fund is 3 years; the investment will be made in Tesla and Apple group bonds. So ; Some of
The investment period of ABC investment fund is 3 years; the investment will be made in Tesla and Apple group bonds. So ; Some of Tesla has 4 years maturity and 10% coupon rate. bonds. Some 6-year maturity Apple bonds. The coupon interest rate of this bond is 10%. It is aimed to create a portfolio (Tesla+ Apple) of 100 million dollar with a duration of 3 years. ABC mutual fund wants to receive 10% return at the end of the 3rd year regardless of market rates. Calculate the duration of Tesla and Apple bonds
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