A company must pay liabilities of 3000 and 5000 at the end, Ask an Expert

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A company must pay liabilities of 3,000 and 5,000 at the end of years 2 and 4. The available investments are a 2-year maturity, 1000 Par zero-coupon bond with an effective annual yield of 5.5%, and a 4-year 100 Par zero coupon bond yielding 6.8%. Find the cost of exactly matching the liabilities.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91771655

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