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Question 6. John wants to absolutely match a debt that he owes under which he must make payment of 1000 in one year and 2000

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Question 6. John wants to absolutely match a debt that he owes under which he must make payment of 1000 in one year and 2000 in two years. He can purchase the following bonds: (1) Bond A is a two year bond with annual coupons of 100 and a maturity value of 1000. (2) Bond B matures in one year for 1000 and pays a coupon of 80. Calculate the amount of Bond B that John should purchase. Hint: 0.758

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