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Question 11 Not yet answered Points out of 2.5 Suppose a company expects liabilities of 100,000 in one year, 200,000 in two years, 300,000 in
Question 11 Not yet answered Points out of 2.5 Suppose a company expects liabilities of 100,000 in one year, 200,000 in two years, 300,000 in three years, and 400,000 in four years. Also suppose that they want to fund those liabilities by an exact match of investments in the following zero coupon bonds and annual coupon bonds. What would be the total amount invested in the bonds? Assume that fractional bonds can be purchased. Flag question Bond Annual Yield Rate Annual Coupon Rate Par Value Maturity Term 4.5% 5% 5.5% 6% Zero Coupon 5% 5% 5% 1000 1000 1000 1000 2 4 Select one: A. 815,998 B. 840,111 C. 848,139 D. 931,124 E. 1,003,459
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