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Business, 29.02.2020 01:24 jak000067oyyfia

A company has liabilities of $10,000 due in 1 year and $20,000 due in 2 years. The company would like to cash flow match these liabilities with a combination of the following assets: a 2-year bond with annual coupons of 5% yielding 4%. a 1-year bond with annual coupons of 6% yielding 3%. What is the par value of the 1-year bond that should be purchased to cash flow match this portfolio?

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A company has liabilities of $10,000 due in 1 year and $20,000 due in 2 years. The company would lik...
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