Problemyou are managing a portfolio of 27 million your, Ask an Expert

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Problem:

You are managing a portfolio of $2.7 million. Your target duration is 15 years, and you can choose from two bonds: a zero-coupon bond with maturity 10 years, and perpetuity, each currently yielding 5%.

Required:

Question: How much of each bond will you hold in your portfolio?

Note: Explain the solution in detail.

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Category:- Basic Finance
Reference No.:- M91174370

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