Betty and Bob have $250,000 to invest in a 6-year ZCB yielding 12% per annum compounded semiannually and the stock market. Assuming that the stock market investment can be worthless at the end of the 6 years, how much money should be invested in each to guarantee an account value of at least $250,000 at the end of 6 years?

Answer rating: 100% (QA)

Solution To guarantee an account value of at least 250000 at the end of 6 years Betty and Bob should ... View the full answer