Exhibit 16-9 USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 22

Multiple Choice

Exhibit 16-9
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
Consider two bonds, both pay annual interest. Bond Y has a coupon of 6% per year, maturity of 5 years, yield to maturity of 6% per year, and a face value of $1000. Bond X has a coupon of 7% per year, maturity of 10 years, yield to maturity of 4% per year, and a face value of $1000.
-Refer to Exhibit 16-9. Assume that your investment horizon is 5 years and your portfolio consists only of Bond Y and Bond X. Indicate the proportions invested in each bond, so that the portfolio is immunized.

• A) 50% in Bond Y and 50% in Bond X
• B) 76% in Bond Y and 24% in Bond X
• C) 36% in Bond Y and 64% in Bond X
• D) 100% in Bond X
• E) 100% in Bond Y

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Definitions:

Team Development

The process of improving the effectiveness and cohesion of a team through various stages and activities.

Adjourning

The final stage in group development where the team completes its task and dissolves, often associated with project teams or task forces.

Assigned Product

Typically refers to a product or task designated to an individual or team as part of their responsibilities.

Self-Managed Team

A group of individuals who work collectively towards shared goals and are responsible for managing their own tasks and processes.