Amount of Treasury Bond Purchased Assignment | Homework For You
May 27th, 2020
As a pension fund manager in 2020, you are given $67,556,416.88 to manage so that the fund will have at least $100,000,000 available in 2030, 10 years from now. The yield curve is flat, and the current interest rate for all maturities is 4%. The only bonds that you can buy are annual coupon Treasury bonds with 1-year maturities and bonds issued in 2020 that mature in 2040 (currently a maturity of 20 years). All bonds are issued at par.
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1. How many of each Treasury bond should you buy today?
$_________________1-Year $_________________20-YearGet Finance homework help today