Question: Please use excel to answer it. 4) You need $100million in five years to complete a major construction project. You have raised enough money to
Please use excel to answer it.

4) You need $100million in five years to complete a major construction project. You have raised enough money to finance the project through a donation campaign, now you need to invest it to make sure you don't get burned by interest rate risk. The only investr year, 5% coupon, $1000 face value bonds that are currently selling at par and eight year, 8% coupon, $1000 face value bonds that have an annual discount rate of 5%. Form an immunized portfolio that will be worth $100million in five years. Show how much your portfolio is worth in year five if interest rates fall after the first year to 4% on both bonds
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