What would be the weights of the two bonds

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Question - The following bonds and liabilities are given:

bond A : zero coupon bond with face value $100 at maturity of 3 years

bond B : zero coupon bond with face value $100 at maturity of 11 years

liability X: one time liability maturing in 4 years with present value $100

liability Y : one time liability maturing in 8  years with present value $100

Suppose you have both liabilities X and Y and want to immunize your liabilities usinf bonds A and B. What would be the weights of the two bonds in your immunizing bond portfolio? Round to nearest 2nd decimal.

Reference no: EM133004466

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