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A Company has liabilities that require payments of 2000 six months from now and 3000 one year from now. The following investments are available to the company: Maturity Effective Yield Par Value Coupon Rate (years) (semi-annual) (semi-annual) 5% 6% 0.5 6.00% 8.00% 1000 1000 Calculate the amount of each bond to purchase and the total cost of the bonds needed to match the liability cash flows exactly

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