A companymust make yearly payments starting at $500,000 and increasing by 7% every year for 10 years.Payments are due at the end of each year.They can invest in a portfolio of coupon-paying bonds that vary in term from 1 to 10 years (a total of 10 unique bonds).Each bond has a redemption of 1000 and a coupon rate equal to the term of the bond (i.e. the 10-year bond has a coupon rate of 10%, the 8-year bond has a coupon rate of 8%). They decide to do an absolute matching strategy to back the liability. At a yield rate of 4% how much would the company need to have available to purchase bonds for this absolute matching strategy?

Use the excel template posted on Canvas to show your work; fill in all empty-box cells.