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  1. business
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  3. a owes b $1100 at the end of one year and is requi

A owes B $1100 at the end of one year and is required to set...

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Finance

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A owes B $1100 at the end of one year and is required to set up an investment fund in order to meet this obligation. The only investments available are a money market fund earnings 10% currently with the rate changing daily and two-year zero coupon bonds also earning 10%. Develop an investment program based on immunization. Assume the effective rate of interest is equal to 10% in all calculations. A owes B $1100 at the end of one year and is required to set up an investment fund in order to meet this obligation. The only investments available are a money market fund earnings 10% currently with the rate changing daily and two-year zero coupon bonds also earning 10%. Develop an investment program based on immunization. Assume the effective rate of interest is equal to 10% in all calculations

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