A firm has to make two payments of 3 million 3 years and 4, Ask an Expert

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A firm has to make two payments of $3 million 3 years and 4 years from now respectively. The current 2-Year rate=7% and the 4-Year Rate = 7.5%. If only 2-Year Zeros and another bond with Duration = 8 years are available, how would you immunize this liability against interest rate risk?

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Financial Management, Finance

Category:- Financial Management
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