Suppose you have liabilities with present value $2 million and duration 11 years. You can...
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Suppose you have liabilities with present value $2 million and duration 11 years. You can invest in two zero coupon bonds of maturities 4 and 26 years respectively. To immunizes your liabilities, how much should you invest in the zero coupon bond of maturity 4 years? (to nearest $0.01)
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