Purchased to achieve reddington immunization

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A company owes payments of $100 2, 4, and 6 years from now. A company can purchase zero coupon bonds with terms of 1 year and 5 years both with an annual effective rate of 10%. How much of each type of bond should be purchased to achieve Reddington Immunization? Verify that you have achieved Reddington Immunization.

Reference no: EM132017522

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