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A client has a 9.7-year investment horizon. Construct a portfolio with the following two bonds for this investor to help prot

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Answer #1

Let weight of Bond A be w
w*6+(1-w)*13.3=9.7
=>w=(9.7-13.3)/(6-13.3)
=>w=0.49315

So, weight of Bond A=0.49315
weight of Bond B=1-0.49315=0.50685

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