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The following table shows the information of 3 bond portfolios Price Macaulay duration Modified convexity...

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The following table shows the information of 3 bond portfolios Price Macaulay duration Modified convexity Bond portfolio A 100 5.2 44.86757 Bond portfolio B 100 4.6 27.90084 Bond portfolio C 100 7.2 61.64577 The term structure is always flat and the current annual effective interest rate is io = 3%. An investor invests his capital in one of these 3 portfolios for 6 years and wishes to earn a return strictly greater than 3%. The investor forecasts that the interest rate is likely to raise in future. However, he expects that the interest rate change in future is at most 5%. Given this prediction, the investor adopts contingent immunization and choose a bond portfolio that allowed the investor to (i) earn a return strictly greater than 3% and (ii) maximize the IRR of the investment given that his prediction is correct. Question: Which bond portfolio should he choose? Provide full justification to your

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