You have liabilities consisting of four payments in the next 2 years as follows Period (in...
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You have liabilities consisting of four payments in the next 2 years as follows Period (in six-months) 1 Liability (in $100,000) 102 2 108 3 105 4 103 Suppose that you have $1,000 par value bonds with different maturities and coupon rates available. How would you build your portfolio to match the cash flows of liabilities? (Hint: List four bonds with different maturities and for each bond, provide the quantity and the coupon rate) You have liabilities consisting of four payments in the next 2 years as follows Period (in six-months) 1 Liability (in $100,000) 102 2 108 3 105 4 103 Suppose that you have $1,000 par value bonds with different maturities and coupon rates available. How would you build your portfolio to match the cash flows of liabilities? (Hint: List four bonds with different maturities and for each bond, provide the quantity and the coupon rate)
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Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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