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1. A company has an obligation to 10,000 at the end of each of the next 3 years. To match these 3 liability cash flows

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1. A company has an obligation to 10,000 at the end of each of the next 3 years. To match these 3 liability cash flows exactly, the company will purchase appropriate amounts of the following 3 bonds, each of which is available in any desired face amount. a l-year zero-coupon bond that is trading for 96.50 per 100 face a 2-year bond paying 4% annual coupons with a 5% yield to maturity a 3-year bond paying 6% annual coupons, trading at 99.10 per 100 face . What is the total cost of the bonds the company will purchase? 27,334 27,412 27,490 27,259 27,005

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