Question A company has liabilities of $1800 and $2150 due at the end of years 1 and 2 respectively. The only investments available are 1-year 5% annual coupon bonds and 2-year 6% annual coupon bonds and both redeemable at par. How much of each bond (in terms of maturity values) should the company buy in order to exactly (absolutely) match the assets and liabilities. 1-year Bond, 2-year Bond Possible Answers A 1352, 2125 B 1348, 2148 1678, 2028 D 1593, 2033 E 1598, 2028