Diff selection: Mark the radio buttons of the revisions to compare and hit enter or the button at the bottom.
Legend: (cur) = difference with latest revision, (prev) = difference with preceding revision, m = minor edit.
Legend: (cur) = difference with latest revision, (prev) = difference with preceding revision, m = minor edit.
| rev | Admin | (Created page with "'''Solution: A''' Only Bond III can match the liability at time 3. The bond must mature for 1000. Only Bond II can match the liability at time 2. The face value and coupon must total 1000. If X is the face value, then X + 0.02X = 1000 and thus X = 980.39. Only Answer A has these to values. To check, Bond II also provides a coupon of 0.02(980.39) = 19.61 at time 1. Therefore, Bond I must provide the remaining 980.39 from its coupon and redemption value. If Y is the face...") | Nov 20'23 at 21:30 | +547 |