Question
You have two payments to make: one in 5 years the other one in 12 years. The present value of the first one is 12
You have two payments to make: one in 5 years the other one in 12 years. The present value of the first one is 12 000, the future value of the second one is 62 768,57. You can invest in 2 year zero coupon bonds or perpetuities with 10% yield. What are the weights of the bonds in the portfolio that would allow to immunize the liabilities?
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Real Estate Investment Strategies Structures Decisions
Authors: David Hartzell, Andrew E. Baum
2nd Edition
1119526094, 978-1119526094
