Question: Using the same information from question 8, suppose that one year has passed, and the interest rate remains at 10%. What actions are required to

Using the same information from question 8, suppose that one year

Using the same information from question 8, suppose that one year has passed, and the interest rate remains at 10%. What actions are required to rebalance the portfolio? Sell 1.27 million 5-year bond, purchase additional 0.27 million 20-year bond and use the net 1 million cash to make the payment buy additional 0.67 million 5-year bond and sell 0.67 million 20-year bond. buy additional 0.27 million 5-year bond, sell 1.27 million 20-year bond and use the net 1 million cash to make the payment Sell 0.67 million 5-year bond, purchase additional 0.67 million 20-year bond. Using the same information from question 8, suppose that one year has passed, and the interest rate remains at 10%. What actions are required to rebalance the portfolio? Sell 1.27 million 5-year bond, purchase additional 0.27 million 20-year bond and use the net 1 million cash to make the payment buy additional 0.67 million 5-year bond and sell 0.67 million 20-year bond. buy additional 0.27 million 5-year bond, sell 1.27 million 20-year bond and use the net 1 million cash to make the payment Sell 0.67 million 5-year bond, purchase additional 0.67 million 20-year bond

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