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You are managing a portfolio of $1.0 million. Your target duration is 12 years, and you can choose from two bonds: a zero-coupon bond with
You are managing a portfolio of $1.0 million. Your target duration is 12 years, and you can choose from two bonds: a zero-coupon bond with maturity five years and a perpetuity, each currently yielding 5%. Required: a. How much of (i) the zero-coupon bond and (ii) the perpetuity will you hold in your portfolio
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Finance For Managers
Authors: E. Martinez Abascal
1st Edition
0077140079, 9780077140076
