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4. A Company has liabilities that require payments of 2000 six months from now and 3000 one year from now. The following investments are available

4. A Company has liabilities that require payments of 2000 six months from now and 3000 one year from now. The following investments are available to the company: Par Value Maturity (years) 0.5 Annual coupon rate payable semiannually Yield rate convertible semiannually 6.00% 8.00% 5% 1000 1000 6% Calculate the amount of each bond to purchase and the total cost of the bonds needed to match the liability cash flows exactly

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