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1. A company has liabilities of $500, $850, $1000, $2550 due at the end of 1.2.3 and 4 vears. The only investments are the following
1. A company has liabilities of $500, $850, $1000, $2550 due at the end of 1.2.3 and 4 vears. The only investments are the following bonds redeemable at par: 1 year 9% annual coupon bond 2- year 4% annual coupon bond 3. year 3% annual coupon bond 4. year 6% annual coupon bond Given an annual effective interest rate of 5%, how much should be invested at time in the z year bond to exactly match the assets and liabilities
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