A
To calculate: The time period of the investment when it obligate.
Introduction: A time period is a weighted average duration in which the total payment is done by the bond and the value of weights is depends on the present value of the payment.
B
To calculate: The amount which is placed in each bond if the plan uses 5 years and 20 years zero-coupon.
Introduction: The investment bond value for future years depend on the present value of the
C
To explain: Face value of the holdings.
Introduction: Face value is related to the share amount. Face value is first price which is assigned to the share holder and this price is fixed for all the time.
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Investments, 11th Edition (exclude Access Card)
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