Question: The Excel file Portfolio Bond Immunization Data contains information about three bonds. Use matrix algebra and this data to construct a portfolio consisting of Bond

  1. The Excel file Portfolio Bond Immunization Data contains information about three bonds. Use matrix algebra and this data to construct a portfolio consisting of Bond 1, Bond 2, and Bond 3 that has a duration of 10 years, subject to the condition that the proportion invested in Bond 3 is 80% larger than the proportion invested in Bond 2. PLEASE USE EXCEL AND SHOW FORMULAS

Yield to maturity (Expected/Current) 8%
Number of Years to Future Liability 10.00
Future Liability $10,000.00
Bond 1 Bond 2 Bond 3
Coupon rate 6.00% 7.000% 8.00%
Maturity (Years) 12 18 30
Face value 1,000 1,000 1,000

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