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Your goal is to have $100,000 in 13.5 years. Yields are 8%. Which of the following will NOT protect your from interest rate risk? Choose
Your goal is to have $100,000 in 13.5 years. Yields are 8%. Which of the following will NOT protect your from interest rate risk? Choose two.
A. A perpetuity with a yield of 8%
B. 15 year bonds with a future value of $100,000 and a 13.5 year duration
C. 15 year bonds with a present value of $100,000 and a 13.5 year duration
D. A zero coupon bond with a present value of $100,000 and 13 years to maturity
E. A zero coupon bond with a future value of $100,000 and 13 years to maturity
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