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How much of bond a would you have to buy to immunise

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Reference no: EM132382502

You are asked to invest $30 million in a bond portfolio consisting of only two bonds. Bond A has a duration of 4.36 years, and bond B has a duration of 6.50 years. The portfolio is to have an investment horizon of 5 years. How much of Bond A would you have to buy to immunise the portfolio?

Reference no: EM132382502

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