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Business, 25.01.2021 21:10 cocodemain

An insurance company accepts an obligation to pay 10,000 at the end of each year for 2 years. The insurance company purchases a combination of the following two bonds at a total cost of X in order to exactly match its obligation: 1-year 4% annual coupon bond with a yield rate of 5% 2-year 6% annual coupon bond with a yield rate of 5% Calculate X.

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An insurance company accepts an obligation to pay 10,000 at the end of each year for 2 years. The in...
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