Question: financial math You have a single liability that requires a payment of $450,000 at time 6. The interest rate for assets and liabilities is in
You have a single liability that requires a payment of $450,000 at time 6. The interest rate for assets and liabilities is in = 0.10. Your plan is to create an immunized portfolio by buying two zero coupon bonds that will mature in 4 years and in 10 years. Find the face value of each bond. Check whether the portfolio is immunized
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