My writer delivered an awesome dissertation on the Creek War, I definitely didn’t have the time to do all the research she did on my own.
This problem has been solved!See the answerA court has ordered Security Enterprises to pay 200000 in two years and 500000 in five years. In order to meet this important liability, they wish to invest in a combination of two-year 10% par-value bonds with annual coupons and five-year zero-coupon bonds. Each of these is sold to yield an annual effective yield of 4%. how much of each type of bond should be purchased so that the present value and duration conditions of Redington immunization are satisfied at the current 4% rate? Is the convexity condition also satisfied?—————————-So I begin by dividing the problem by concentrating on the present value of the 200000. I use the price formula…but my pricing seems very wrong..1361After which I tried to use that number to figure out the duration of the 2 year bond.~=3.5733.575(a/[a+b])+5(b/[a+b])=2….this is where it gets really weird.1.575a = -3bPlease help.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more