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We would like to invest 1 000 000 USD and we have two bonds in our portfolio such as: Maturity Coupon rate YTM FV A
We would like to invest 1 000 000 USD and we have two bonds in our portfolio such as:
Maturity | Coupon rate | YTM | FV | |
A | 5 | 0% | 10% | 100USD |
B | 2 | 12% | 12% | 100USD |
What would be the yield of this portfolio when investment horizon is 3 years.
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