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(4 pts.) *** HINT this question is inspired by the last exam review. plase refer to those notes if needed. *** You have the following
(4 pts.) *** HINT this question is inspired by the last exam review. plase refer to those notes if needed. *** You have the following abilities to pay Year 1: 246000 Year 2: 418000 You would like to apply the cash flow matching strategy. You can invest in the following bonds: A: 2010-coupon. 1 year to maturity, 3% yield, par value $100 B;8% annual coupon, 2 years to muturity, 4% yield, par value $100 czero-coupon, 3 years to maturity, o vield, par value $100 Think about which bonds you would buy to apply the cash flow matching strategy How many Bonds A would you buy? PLEASE INPUT YOUR ANSWER IN UNITS, ROUNDING TO THE NEAREST INTEGER (ROUNDING UP OR DOWN WILL NOT AFFECT THE SCORE
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