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2. The Cen Foundation has agreed to pay Arthur 100,000 at the end of each year for two years. The Cen Foundation wants to use
2. The Cen Foundation has agreed to pay Arthur 100,000 at the end of each year for two years. The Cen Foundation wants to use the following two bonds to exactly match the payments to Arthur. a. Bond A is a one-year bond with a maturity value of 2,000 and annual coupons of X. The amount of bond A needed to exactly match the payments is 45.0045. b. Bond B is a two-year bond with a maturity value of 3,500 and annual coupons of Y. The amount of bond B needed to exactly match the payments is 28.2885. Round X and Y to two decimals and calculate (X-Y)
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