Business, 26.02.2020 23:23 Cayden7950
You are worried about interest rate volatility. You decide to hedge your portfolio with a 10-year zero coupon bond (face value $100). (a) How much should you go short/long on this bond in order to make it immune to interest rate changes? Find out both the total dollar amount and the number of such bond. (b) What is the total value of the portfolio now?
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