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What face value zero-coupon bond

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Your client has asked that you manage a bond portfolio to immunize their exposure to a personal loan that will be repaid in full by payments of $26,000 a year at the end of the next two years (i.e., one year from today and two years from today respectively). The current yield on all bonds is 12% p.a. with coupons paid annually. What face value zero-coupon bond would immunize your client's obligation?

Reference no: EM132555156

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