Question: Using the data below, find a combination of bonds 1 and 3 with a duration. of 9. Then find a combination of bonds 1 and

Using the data below, find a combination of bonds 1 and 3 with a duration. of 9. Then find a combination of bonds 1 and 2 with a duration of 9. 7% Bond 1 Bond 2 Bond 3 6.9% 20 7.30% 30 1,000 1,000 1 2 Yield to maturity 3 4 5 6 Coupon rate 7 Maturity 8 Face value 9 10 Bond price 11 Face value equal to $1,000 of market value. 12 13 Duration. 14 15 New yield to maturity 16 17 18 Target duration 19 Combination of bonds 1 and 3. 20 Weight of Bond 1 21 Weight of Bond 3 22 Combination of bonds 1 and 2 23 Weight of Bond 1 24 Weight of Bond 2 5.6% 10 1,000 8.5% 9 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 25 26 Bond price 27 Reinvested coupons 28 Total 29 30 Multiply by percent of face value bought 11 Product 32 Bond 1 Bond 2 Bond 3 #NAME? INAME? #NAME? #NAME? Bond 1&2 portfolio Bond 1&3 Portfolio #NAME? 48 50 Data table **************** 0% 3% 4% NO 30% 11% 12% TIN 14% 13% Bond 152 portfolio Bond 183 Portfolio NAME? INAME? 5330000 $2,250.00 $1,200.00 $2.350.00 $1,300.00 $100.00 $1,000.00 $10.00 $100000 $10.00 $10000 of IN IN Immunization M SIE SIE MIT fond 151 Pute Using the data below, find a combination of bonds 1 and 3 with a duration. of 9. Then find a combination of bonds 1 and 2 with a duration of 9. 7% Bond 1 Bond 2 Bond 3 6.9% 20 7.30% 30 1,000 1,000 1 2 Yield to maturity 3 4 5 6 Coupon rate 7 Maturity 8 Face value 9 10 Bond price 11 Face value equal to $1,000 of market value. 12 13 Duration. 14 15 New yield to maturity 16 17 18 Target duration 19 Combination of bonds 1 and 3. 20 Weight of Bond 1 21 Weight of Bond 3 22 Combination of bonds 1 and 2 23 Weight of Bond 1 24 Weight of Bond 2 5.6% 10 1,000 8.5% 9 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 25 26 Bond price 27 Reinvested coupons 28 Total 29 30 Multiply by percent of face value bought 11 Product 32 Bond 1 Bond 2 Bond 3 #NAME? INAME? #NAME? #NAME? Bond 1&2 portfolio Bond 1&3 Portfolio #NAME? 48 50 Data table **************** 0% 3% 4% NO 30% 11% 12% TIN 14% 13% Bond 152 portfolio Bond 183 Portfolio NAME? INAME? 5330000 $2,250.00 $1,200.00 $2.350.00 $1,300.00 $100.00 $1,000.00 $10.00 $100000 $10.00 $10000 of IN IN Immunization M SIE SIE MIT fond 151 Pute

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