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A company has assured pension liabilities of 35 crores, 50 crores and 55 crores for the next three years. How much should the company
A company has assured pension liabilities of 35 crores, 50 crores and 55 crores for the next three years. How much should the company be investing now if it is considering the following recommended bonds for investment purposes? Bond Coupon Yield-To-Maturity X 8.00% 5.50% Maturity 1-Year Price Rs. 1,024 Y 9.50% 6.00% 2-Year Rs. 1,064 Z 10.00% 6.25% Rs. 1000 3-Year Rs. 1,100 What is the strategy you are following in this case? Explain how does this strategy handle the interest rate risk? Par Value Rs. 1000 Rs. 1000
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