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Your must pay 2 5 0 , 0 0 0 to 3 years from today. The duration of Bond 1 is 2 years and the
Your must pay to years from today. The
duration of Bond is years and the duration of
Bond is years. The yield to maturity of both
bonds is per year. How much must you invest
in Bond A and Bond B to immunize yourself
against interest rate risk?
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