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b . Pershing Square Associates ( PSA ) munt pay tibbilities of $ 4 , 0 0 0 due 6 months from now and another

b. Pershing Square Associates (PSA) munt pay tibbilities of $4,000 due 6 months from now and
another 5104,0.00 due I year from now. Leea & Perrins investment Co. is willing to sell him
the following rwo investments:
How much of each bond should PSA purchase in order to exactly, (absolutely) match
(replicate the cash flows of) the liabilities?
What is PSA's total cost of purchasing the bonds?
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