An investor wants to earn a minimum return of 2.5% over the next 5 years. He...

 

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An investor wants to earn a minimum return of 2.5% over the next 5 years. He doesn't want to take any price risk and reinvestment risk. As a portfolio manager, how can you help him to construct a bond portfolio? What would be your profits? (Given you are interested in the following bonds.) ratingcouponmaturityyieldnop=number of payments which is twice a year 3.39 2 3.25 2 bond#1aaa bond#2aaa 4.63 3.25 An investor wants to earn a minimum return of 2.5% over the next 5 years. He doesn't want to take any price risk and reinvestment risk. As a portfolio manager, how can you help him to construct a bond portfolio? What would be your profits? (Given you are interested in the following bonds.) ratingcouponmaturityyieldnop=number of payments which is twice a year 3.39 2 3.25 2 bond#1aaa bond#2aaa 4.63 3.25