Construct a bond portfolio

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An investor wants to earn a minimum return of 3% over the next 5 years.  He doesn't want to take any price risk and reinvestment risk. As a portfolio manager, how can you help him to construct a bond portfolio? What would be your profits? (Given you are interested in the following bonds.)    

 

Ratings

Coupon

Maturity

Yield

Number of payments per year

Bond 1

AAA

4.75

6 years

3.50%

2

Bond 2

AAA

3.5

8 years

3.00%

2

Reference no: EM133055990

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