Question Company MZH must make a payment of $800 in one year and a...

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Accounting

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Company MZH must make a payment of $800 in one year and a payment of $1,400 in
two years.
The only investments available are 1-year zero coupon bonds and 2-year 8% annual
coupon bonds maturing at par. The company purchases a combination of these bonds to
exactly match its liabilities.
How much of the 1-year bond (in terms of face value) should company MZH buy?
Possible Answers
598.27
659.31
682.19
696.30
712.35
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