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Rumi has a liability of $1500 at the end of year 1 and another liability of an amount L at the end of year 2.

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Rumi has a liability of $1500 at the end of year 1 and another liability of an amount L at the end of year 2. She created a portfolio of assets that exactly match her liabilities using the following bond with annual coupons: 1-year bond: 3% (Coupon), 5% (Yield) 2-year bond: 6% (Coupon), 7% (Yield) Find the amount of the second liability L if Rumi invested $1291 now in the 1-year bond

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