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A P&C company has the following liabilities due on the following dates: Suppose the only assets this P&C company can buy to offset the liabilities
A P&C company has the following liabilities due on the following dates:
Suppose the only assets this P&C company can buy to offset the liabilities are
Asset : year bond with an annual coupon rate of and face value of $
Asset : year bond with an annual coupon rate of and face value of $
Asset : year bond zero coupon bond with a face of $
How many of Assets must the P&C company bys so as to be cashflow matched with the
liabilities?
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