Ashley has received a large inheritance from her

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Ashley has received a large inheritance from her grandmother and wants to put aside enough money to pay for her child's college education.She calculates that she will need $90,000 three years from now to fund college. Ashley can buy a four year bond paying 9% interest and yielding 8%. Will she be immunized from interest rate risk over the next four years if she buys this bond now and plans to sell it after three years? Explain. (Note: you should first calculate the duration of the bond to answer this question).

Reference no: EM13483547

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