How much must ql invest in strip

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The yield curve is flat at 10% (expressed as an APR with semiannual compounding). QL Co must make a 8M payment in 5 years. QL Co has available 2-year strips and 10-year strips. For a portfolio that immunizes the liability stream using target-date immunization, how much must QL invest in each strip?

Reference no: EM133004596

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