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. A company has liabilities of $500, $850, 1000, and $2550 due at the end of years 1, 2, 3, and 4 respectively. The only

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. A company has liabilities of $500, $850, 1000, and $2550 due at the end of years 1, 2, 3, and 4 respectively. The only investments available are the following bonds, all redeemable at par 1-year 9% annual coupon bond 2-year 4% annual coupon bond 3-year 3% annual coupon bond 4-year 6% annual coupon bond Given an effective rate of interest of 5%, how much should the company invest in the 2-year bond in order to exactly match the assets and liabilities Rossible Answers 593.71 3 617.45 C 642.40 D 634.56 669 20

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