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You have an obligation in 1 year with a face value of $151000.00 and a second obligation in 2 years with a face value of
You have an obligation in 1 year with a face value of $151000.00 and a second obligation in 2 years with a face value of $51000.00. There are two bonds available for purchase: 1) A 1-year zero coupon bond. 2) A 2-year coupon bond with a 7.60% annual coupon. You engage in a cash-flow matching strategy. How much in face value of the 1-year zero coupon bond do you purchase
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