Constructing a two bond hedge

Do we need to know how to construct it ?

Do you want the truth or what you want to hear?

Absolute truth

Learn it. Know it. Live it.

It is in one of the EOC.

The answer is like two pages. I will keep this for the end.

Probably not construct it but know what it’s for. It takes too much time to calculate everything.

You solve a two equation , two variable problem , given two parameters for two rates ( short and long)

dude its easier than it looks. its basic algebra. do it three times and youll have it down

its so easy, do you know 8th grade algebra shun.

Thanks guys for your support. will clean it up now itself

The EOC question has TEN steps, there is no way they will make us calculate this on the exam the LOS says “compare and contrast” the approaches - not to calculate. know the concepts and you will be fine