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Problen 1 Part 1 (Caah Matehing) Formulate a linear programming model and solve using MATLAB or Python to find the lowest-cout dedicated bond portfolio that cover the atream of liabilities given in the table below (allow caah to be carried forward at the forward rates that are consistent with the spot raten s1=0.04%0s2=5.94%2,s2= 6.36%,s4=7.18%,ss=7.89%,se=8,395%) : with the set of bondis below: 1 What is the coot of your portfolio? How many unite of cach bonds are in your portfolio? Part 2 (Optimal Immunization) Now formulate a linear programming model and dolve woing MATLAB or Python to find the lowent-coat bond portfolio (uaing the aame bondo in Part 1) that matehes the preaent value of the liabilites and dollar duration of the liabilities. The dollar duration (DD) of a stream of liabilities (l1,l2,,lm) is DD=t=1m(1+mi)+rt+ii (Note: Uoe the given apot ratea to compute the PV of liabilitiea). What in the cont of your portfolio and compare with the coat from Part 1. How many units of each bond are in your portfolio and compare with the portfolio from Part 1? Frolatersa 2 PART You will use the following three ETFo (exehange-troded fundo) to form o Dortfolio of these three anwets. An FCIF operatea just like a wtock, but thear (1) SPDIR SIS. 500 ETI (SIPY), thio in a fund that mimieo the perfor wance of the 98.1000 which is a well known market index consisting of soo lerge copitalimation otoelco from the U.SS. performanee of a wide met of U S 'Tren=ury bomdin: (a)Trum= Chic gaaremant a pa- 2 PART 2 Repeat (b) of PART 1 using the stocks SPY, GOV, EEMV as well as the stocks below (so portfolios will have 8 assete now) that have heavy involvement and connection to development or use of blockchain technology (some people think that these stocks are going to do well in the future) (4) CME Group (CME) (5) Broadridge Financial Solutiona (BR) (6) Cboe Global Markets (CBOE) (7) Intercontinental Exchange (ICE) (8) Accenture (ACN) Problen 1 Part 1 (Caah Matehing) Formulate a linear programming model and solve using MATLAB or Python to find the lowest-cout dedicated bond portfolio that cover the atream of liabilities given in the table below (allow caah to be carried forward at the forward rates that are consistent with the spot raten s1=0.04%0s2=5.94%2,s2= 6.36%,s4=7.18%,ss=7.89%,se=8,395%) : with the set of bondis below: 1 What is the coot of your portfolio? How many unite of cach bonds are in your portfolio? Part 2 (Optimal Immunization) Now formulate a linear programming model and dolve woing MATLAB or Python to find the lowent-coat bond portfolio (uaing the aame bondo in Part 1) that matehes the preaent value of the liabilites and dollar duration of the liabilities. The dollar duration (DD) of a stream of liabilities (l1,l2,,lm) is DD=t=1m(1+mi)+rt+ii (Note: Uoe the given apot ratea to compute the PV of liabilitiea). What in the cont of your portfolio and compare with the coat from Part 1. How many units of each bond are in your portfolio and compare with the portfolio from Part 1? Frolatersa 2 PART You will use the following three ETFo (exehange-troded fundo) to form o Dortfolio of these three anwets. An FCIF operatea just like a wtock, but thear (1) SPDIR SIS. 500 ETI (SIPY), thio in a fund that mimieo the perfor wance of the 98.1000 which is a well known market index consisting of soo lerge copitalimation otoelco from the U.SS. performanee of a wide met of U S 'Tren=ury bomdin: (a)Trum= Chic gaaremant a pa- 2 PART 2 Repeat (b) of PART 1 using the stocks SPY, GOV, EEMV as well as the stocks below (so portfolios will have 8 assete now) that have heavy involvement and connection to development or use of blockchain technology (some people think that these stocks are going to do well in the future) (4) CME Group (CME) (5) Broadridge Financial Solutiona (BR) (6) Cboe Global Markets (CBOE) (7) Intercontinental Exchange (ICE) (8) Accenture (ACN)

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