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Calculate the amount invested today in each bond.

Calculate the amount invested today in each bond.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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chnology Require. A company is required to pay 500.000 ten years from now and 500,000 fifteen years from now. The company needs to create an investment portfolio using 5-year and 20-year zero-coupon bonds, so that, using a 7% annual force of interest, the present value and Macaulay duration of its assets match those of its liabilities. Calculate the amount invested today in each bond. Possible Answers Computer and Infor..... O Primitive Data Type..... A 211,631 for the 5-year bond and 211,631 for the 20-year bond B 217.699 for the 5-year bond and 217,699 for the 20-year bond C D E 223,852 for the 5-year bond and 199,410 for the 20-year bond 229,857 for the 5-year bond and 205,540 for the 20-year bond 248,293 for the 5-year bond and 174,969 for the 20-year bond
Transcribed Image Text:chnology Require. A company is required to pay 500.000 ten years from now and 500,000 fifteen years from now. The company needs to create an investment portfolio using 5-year and 20-year zero-coupon bonds, so that, using a 7% annual force of interest, the present value and Macaulay duration of its assets match those of its liabilities. Calculate the amount invested today in each bond. Possible Answers Computer and Infor..... O Primitive Data Type..... A 211,631 for the 5-year bond and 211,631 for the 20-year bond B 217.699 for the 5-year bond and 217,699 for the 20-year bond C D E 223,852 for the 5-year bond and 199,410 for the 20-year bond 229,857 for the 5-year bond and 205,540 for the 20-year bond 248,293 for the 5-year bond and 174,969 for the 20-year bond
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