Question: Using the example of section 7.7: a. Find a combination of bonds 1 and 3 with a duration of 8. b. Find a combination of

Using the example of section 7.7:

a. Find a combination of bonds 1 and 3 with a duration of 8.

b. Find a combination of bonds 1 and 2 with a duration of 8.

c. Which portfolio (a or

b) would you prefer to immunize an obligation with a duration of 8?

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