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A company uses an asset/liability matching approach and needs to determine the best strategy to finance a $10 million liability coming due in 7 years.

A company uses an asset/liability matching approach and needs to determine the best strategy to finance a $10 million liability coming due in 7 years. Is a Coupon STRIP the best way to finance this liability while mitigating the effect of interest rate changes in the intervening 7 years? Yes or no and why?

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