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Aztec Co. has just purchased some equipment and arranged to rent it out for $ 2 mil a year over five years Aztec also finances

Aztec Co. has just purchased some equipment and arranged to rent it out for $ 2 mil a year over five years Aztec also finances by issuing a packaging of one year zero coupon bond and four year bond with 6% annual coupon The cost of capital of Aztec is 8%. 



Calculate the proportion of one year and four year bonds to set up a hedged position .

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