Question: Please show work in excel with the all the formulas Problem 7 Your firm is obligated to make payments to a supplier according to the

 Please show work in excel with the all the formulas Problem

Please show work in excel with the all the formulas

Problem 7 Your firm is obligated to make payments to a supplier according to the following schedule: Year 1 Year 2 Year 3 $1.5 million $1.75 million $10 million You want to immunize this liability investing in some combination of a 2-year bond with a 4% coupon and a 4-year bond with a 6% coupon. You can assume these bonds pay interest annually and have a par value of $1,000. Use a discount rate / YTM of 6% throughout this problem. How many (in terms of numbers of bonds) of each type of bond do you need to purchase to immunize your liability

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