Verizon bonds are selling at an ytm of 10 percent and have, Ask an Expert

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Verizon bonds are selling at an ytm of 10 percent, and have a duration of 8 years. At&t bonds are selling at bonds are selling at an ytm of 11 percent, and have duration of 14 years. If you wish to construct a $100 million portfolio, which will be immunized against interest rate changes over a horizon of 10 years, how much must be invested in each of the two bonds?

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Financial Management, Finance

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