Invest in each bond to immunize this portfolio

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You plan to go to graduate school in 4 years. You estimate the cost of your graduate program to be 10,000. You are thinking of investing in a 5 year coupon bond and a 3 year 8% coupon bond with a yield to maturity of 10% what proportion of your portfolio should you invest in each bond to immunize this portfolio? a. 67% in zero coupon bond and 33% in coupon bond. b, 55% in zero coupon bond and 45% in coupon bond. c. 50% in the zero coupon bond and the 50% in coupon bond. d. 78% in zero coupon bond and the 12% in coupon bond.

Reference no: EM131593051

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