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1. Today is 1 January 2018. Jackson who is aged 80 has a portfolio which con sists of three different types of financial instruments (henceforth

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1. Today is 1 January 2018. Jackson who is aged 80 has a portfolio which con sists of three different types of financial instruments (henceforth referred to as Instrument A is a zero-coupon bond with a face value of 100. This bond Instrument B is a Treasury bond with a coupon rate of J2-3.45% p.a. instrument A, instrument B and instrument C. (35 marks) matures at par. The maturity date is 1 July 2023. and face value of 100. This bond matures at par. The maturity date is 1 July 2020. Instrument C is a Treasury bond with a coupon rate of J2-2.85% p.a. and face value of 100. This bond matures at par. The maturity date is 1 January 2021

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