ur company has 60 bonds outstanding with an 8% annual coupon. The bonds have two years to maturity and the yielc maturity is 6%. You want to immunize your position by investing in zero-coupon bonds. What maturity zero-coupon onds should you choose, and how much money should you invest?

ur company has 60 bonds outstanding with an 8% annual coupon. The bonds have two years to maturity and the yielc maturity is 6%. You want to immunize your position by investing in zero-coupon bonds. What maturity zero-coupon onds should you choose, and how much money should you invest?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 23P

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Subject:- finance
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