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. A company has liabilities of $500, $900, $2000, and $2300 due at the end of years 1, 2, 3, and 4 respectively. The only

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. A company has liabilities of $500, $900, $2000, and $2300 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 7% annual coupon bond 2-year 6% annual coupon bond 3-year 5% annual coupon bond 4-year 8% annual coupon bond. How much of the 1-year bond (in terms of face value) should the company buy in order to exactly match the assets and liabilities. . Possible Answers A 193 B 198 206 D 235 E 275 . A company has liabilities of $500, $900, $2000, and $2300 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 7% annual coupon bond 2-year 6% annual coupon bond 3-year 5% annual coupon bond 4-year 8% annual coupon bond. How much of the 1-year bond (in terms of face value) should the company buy in order to exactly match the assets and liabilities. . Possible Answers A 193 B 198 206 D 235 E 275

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