You are hired as an investment manager and given a bond portfolio to manage. The Record of Trust requires a payout to the beneficiary of $7 million in 7 years. The client restricts you to two bond issues, both of which come in denominations of $1000.
The Discovery Cafe Bond has a duration of 2.54 years and is quoted at 88.206
The Tardis Intertemporal Bond has a duration of 12.26 years and is quoted at 80.185
Both bonds currently yield 7.625%. To immunize the portfolio you need to put ______ % of the portfolio into Discovery Cafe bonds and ______ % of the portfolio into Tardis Intertemporal bonds.To do this you must buy ______ Discovery Cafe bonds and ______ Tardis Intertemporal bonds.
The portfolio must begin with a minimum value of at least $______.