You are facing an obligation with a present value of 100000, Ask an Expert

Management Studies

You are facing an obligation with a present value of $100000, duration 8 years, and convexity 24. You want to utilize an immunization strategy for this obligation, which exclusively involves three bonds: A,B and C. You calculated the following information for the three bonds:

Bond	Duration	Convexity
A	4	16
B	12	20
C	16	32

How much money should you invest in each of the bonds with a duration matching immunization strategy?
How much money should you invest in each three bonds with duration and convexity matched immunization strategy?

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Business Management, Management Studies

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