Find the total spent on both bonds

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Reference no: EM131558689

As payments for a new product, a company knows that it will need to pay 10,000 at the end of each year for the next two years. To help fund this purchase, the companies decides to purchase par-value bonds of the following types:

Bond A: 1-year, zero-coupon, 5% annual yield

Bond B: 2-year, 6% annual coupons, 5% annual yield

If the bonds are purchased to cover the liabilities exactly, find the total spent on both bonds.

Reference no: EM131558689

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