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Business, 03.05.2021 16:10 unkown77

Joe must pay liabilities of 1,000 due 6 months from now and another 1,000 due one year from now. There are two available investments: 1. a 6-month bond with face amount of 1,000, a 8% nominal annual coupon rate convertible semiannually, and a 6% nominal annual yield rate convertible semiannually; and 2. a one-year bond with face amount of 1,000, a 5% nominal annual coupon rate convertible semiannually, and a 7% nominal annual yield rate convertible semiannually What is Joe's total cost of purchasing the bonds required to exactly (absolutely) match the liabilities

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Joe must pay liabilities of 1,000 due 6 months from now and another 1,000 due one year from now. The...
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