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Q4 12 Points Katrina has obligations to pay liabilities of 1,500 due 1 year from now, 1,800 due 2 years from now, and 1,400 due

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Q4 12 Points Katrina has obligations to pay liabilities of 1,500 due 1 year from now, 1,800 due 2 years from now, and 1,400 due 3 years from now. There are three available investments: Bond A: A one-year annual coupon bond with face amount of 1,500 with an annual coupon rate of 6%. The annual effective yield-to-maturity is 5%. Bond B: A two-year annual coupon bond with face amount of 1,500 with an annual coupon rate of 4%. The annual effective yield-to-maturity is 7%. Bond C: A three-year annual coupon bond with face amount of 1,500 with an annual coupon rate of 8%. The annual effective yield-to-maturity is 10%. She plans to exactly match the liabilities using three available bonds. Q4.1 5 Points Calculate the number of units to purchase each of the bond. Enter your answer here Q4.2 3 Points Calculate the price of each bond. Enter your answer here Q4.3 3 Points Calculate the total cost amount of purchasing three available bonds to exactly match the liabilities Katrina owes. Enter your swer here Q4.4 1 Point Katrina figures out that three bonds she is about to use are from the treasury bond. Identify what kind of yield curve looks like. Enter your answer here

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