Question: b . Pershing Square Associates ( PSA ) munt pay tibbilities of $ 4 , 0 0 0 due 6 months from now and another

b. Pershing Square Associates (PSA) munt pay tibbilities of $4,000 due 6 months from now and
another 5104,0.00 due I year from now. Leea & Perrins investment Co. is willing to sell him
the following rwo investments:
How much of each bond should PSA purchase in order to exactly, (absolutely) match
(replicate the cash flows of) the liabilities?
What is PSA's total cost of purchasing the bonds?
b. Pershing Square Associates (PSA) munt pay tibbilities of $4,000 due

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