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Aiden has to pay 200 at the end of year 1, 400 at the end of year 2, and 500 at the end of year
Aiden has to pay 200 at the end of year 1, 400 at the end of year 2, and 500 at the end of year 3. The following bonds are currently available: Term Annual Coupon Kate Annual Yield Rate 1 3% 4.0% 596 4.596 3 896 4.996 Aiden buys amounts of each bond to exactly match the three liabilities. Determine the total purchase price of the 1-year and 2-year bonds. a. 529 b. 536 C. 489 d. 517 e. 495 Aiden has to pay 200 at the end of year 1, 400 at the end of year 2, and 500 at the end of year 3. The following bonds are currently available: Term Annual Coupon Kate Annual Yield Rate 1 3% 4.0% 596 4.596 3 896 4.996 Aiden buys amounts of each bond to exactly match the three liabilities. Determine the total purchase price of the 1-year and 2-year bonds. a. 529 b. 536 C. 489 d. 517 e. 495
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