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

Please do not use excel (use fm concepts) Please do not use excel (use fm concepts) A company must pay

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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