Diff selection: Mark the radio buttons of the revisions to compare and hit enter or the button at the bottom.
Legend: (cur) = difference with latest revision, (prev) = difference with preceding revision, m = minor edit.
Legend: (cur) = difference with latest revision, (prev) = difference with preceding revision, m = minor edit.
| rev | Admin | (Created page with "'''Solution: B''' Let <math>x</math> be the amount invested in the one-year bond and <math>y</math> the amount invested in the four-year bond. First match the present value of assets and liabilities: <math display = "block"> \begin{aligned} & P V_A=P V_L \\ & x+y=2000 \end{aligned} </math> Second, the durations of assets and liabilities should also match: <math display = "block"> \begin{aligned} & D_A=\frac{1 x+4 y}{x+y} \\ & D_A=\frac{1 x+4(2000-x)}{2000}=D_L=3 \\ & x...") | Nov 20'23 at 22:06 | +803 |