ACTS 4308. AU 2017. HOMEWORK 8 Use the cash flow matching to determine how many of each investments will cover these liabilities and calculate the total price of assets. Problem 6 A Company has liabilities that require payments of 2000 six months from now and 3000 one year from now. The following investments are available to the company: Maturity Effective Yield | Par Value Coupon Rate (years) (semi-annual) 6.00% 8.00% semi-annual 5% 5% 0.5 1000 1000 Calculate the amount of each bond to purchase and the total cost of the bonds needed to match the liability cash flows exactly. Problem7