Question
You will be paying $11,000 a year in tuition expenses at the end of the next two years. Bonds currently yield 11%.
What maturity zero-coupon bond would immunize your obligation?
I found the duration, but am having trouble finding the face value.
Duration: 1.4739
Face Value: ?
What maturity zero-coupon bond would immunize your obligation?
I found the duration, but am having trouble finding the face value.
Duration: 1.4739
Face Value: ?