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Business, 06.05.2021 20:50 alyssabalinnt

XYZ company has to pay its customers $2,000 after 2 years and $6,000 after 4 years. In order to fund these payments, the company will buy one year and five year zero coupon bonds. The current market interest rate is 10%. The company wants to immunize itself from potential interest rate risk (Redington Immunization). Which portfolios would ensure XYZ achieves immunization?

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XYZ company has to pay its customers $2,000 after 2 years and $6,000 after 4 years. In order to fund...
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