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Company ABC has liabilities of 20,000, 50,000, and 70,000 due atthe end of years 1, 2, and 3 respectively. The company would liketo exactly match these liabilities using the following assets:A one-year zero coupon bond with a yield of 4%A two-year zero coupon bond with a yield of 5%A three-year coupon bond with annual coupons of 6% and a yieldof 5.5%What is the total cost of the asset portfolio that will matchthe liabilities?Please answer as soon as possible!!!Thank you
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