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Use these three bonds to make a portfolio. The investment horizon equal to seven years. Compute the expected yield of the portfolio. And compute the
Use these three bonds to make a portfolio. The investment horizon equal to seven years.
Compute the expected yield of the portfolio. And compute the total amount an investor must invest in each bond in the portfolio if he faces liability equal to $250000 in seven years. (Use excel and show your work)
Face Value Coupon rate Time to maturity Payment Freq Periods to maturity Coupon payment AZY 6-Year bond $ 100.00 4.60% 6.00 TSR 7-Year bond $ 100.00 9.40% 7.00 ONM 9-Year bond $ 100.00 5.00% 9.00 222 12.00 $ 2.30 14.00 $ 4.70 18.00 $ 2.50
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