Question: 3 Bonds have the following values BOND FACE VALUE MATURITY A 1000 3 B 1000 2 C 1000 3 Your company is expected to pay

3 Bonds have the following values

BOND FACE VALUE MATURITY
A 1000 3
B 1000 2
C 1000 3

Your company is expected to pay some liabilities as follows : 124 at the end of year 1, 567 at the end of the year 2 and 654 at the end of year 3

1. Show the problem as a Matrix system.

2. Calculate the inverse matrix for the system.

3. What are the weights in your portfolio of A, B and C in order to meet the payments?

4. if the relevant interest rate is 10%. Calculate the value of this portfolio as a multiplication of two vectors.

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