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you have just purchased an annual coupon payment bond for $900.65. The current yield of the bond is 11.1031 percent. the bond matures in 8

you have just purchased an annual coupon payment bond for $900.65. The current yield of the bond is 11.1031 percent. the bond matures in 8 years and has a face value of $100.

Your investment horizon is equal to he duration of the bond. Show that your investment would be immunized against risk even though the yield to maturity on the bond falls by 50 basis points immediately after you purchase the bond.

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