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Question 7 A company must pay liabilities of 1000 and 2000 at the end of years 1 and 2, respectively. The only investments available to

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Question 7 A company must pay liabilities of 1000 and 2000 at the end of years 1 and 2, respectively. The only investments available to the company are the following two zero-coupon bonds: Maturity (years) Effective annual yield Par 1 10% 1000 2 12% 1000 Determine the cost to the company today to match its liabilities exactly. (a) 2303.48 (b) 2403.48 (c) 2503.48 (d) 2603.48 (el 07024

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