Question: Please do not use excel (use fm concepts) A company must pay liabilities of 98 in one year, 100 in two years, and 107 in
A company must pay liabilities of 98 in one year, 100 in two years, and 107 in three years. The only investments available are Bond A, Bond B and Bond C. The par value of all three bonds is 100 and all three bonds will be redeemed at par. Bond Maturity Annual Effective Yield Rate Coupon Rate 1 Year 3% A 5% 2 Years 4% 0% 3 Years 5% 4% Calculate the number of units for each bond that must be purchased to match the liabilities exactly
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