4. A life insurance company expects to make payments of $30,000,000 in one year,

$15,000,000 in two years, $25,000,000 in three years, and $35,000,000 in four years to satisfy claims of policyholders. These anticipated cash flows are to be matched with a portfolio of the following $1000 face value bonds:

Bond Current Price Coupon Rate Years to Maturity 1 1000 0.10 1 2 980 0.10 2 3 1000 0.11 3 4 1000 0.12 4 How many of each of the four bonds should the company purchase to exactly match its anticipated payments to policyholders?