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Noah Kramer, a fixed-income portfolio manager based in the country of Sevista, is con- sidering the purchase of a Sevista government bond. Kramer decides to evaluate two strategies for implementing his investment in Sevista bonds. Table 11.6 gives the details of the two strategies, and Table 11.7 contains the assumptions that apply to both strategies.
I |
$5 million |
0 |
$5 million |
II |
0 |
$10 million |
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