How much will the investment be worth after given years

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Question: Design an investment of $20, 000 in a portfolio of duration 2 years consisting of two kinds of coupon bonds maturing after 2 years, with annual coupons, bond A with $20 coupons and $100 face value, and bond B with $5 coupons and $500 face value, given that the initial rate is 8%. How much will this investment be worth after 2 years?

Reference no: EM131638004

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