What is the cost of the given portfolio

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Assume liabilities of $250, $500, and $550 must be met in periods 1, 2, and 3, respec- tively. Find a portfolio of the bonds shown below that meets these cash outflows. What is the cost of the portfolio?

 

Cash Flows in Period

 

Bond

Price

1

2

3

A

950

50

1,050

 

B

1,000

100

100

1,100

C

920

1,000

 

 

Reference no: EM13908682

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