An insurance company wants to match liabilities of 5,000 payable in one year and 10,000...
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An insurance company wants to match liabilities of payable in one year and payable in two years with specific assets. The following assets are currently available: Oneyear bond with an annual coupon of at par Twoyear bond with annual coupons of at par Twoyear par value bond with annual coupons of sold at an annual effective yield rate of Calculate the smallest amount the company needs to disburse today to purchase assets that will exactly match these liabilities. 
An insurance company wants to match liabilities of payable in one year and payable in two years with specific assets. The following assets are currently available:
Oneyear bond with an annual coupon of at par
Twoyear bond with annual coupons of at par
Twoyear par value bond with annual coupons of sold at an annual effective yield rate of
Calculate the smallest amount the company needs to disburse today to purchase assets that will exactly match these liabilities.
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