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Simple Question on a replicating portfolio. Please look at the attached Q3 and answer.

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Simple Question on a replicating portfolio. Please look at the attached Q3 and answer. My question is when setting up the system of equations why don't we take into account all 15 years of coupons. I guess I am not understanding how to set up the system of equations.

 

Paper#28364 | Written in 18-Jul-2015

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