How much in face value of the year zero coupon bond

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Question - You have an obligation in 1 year with a face value of $151000.00 and a second obligation in 2 years with a face value of $51000.00.

There are two bonds available for purchase:

1) A 1-year zero coupon bond.

2) A 2-year coupon bond with a 7.60% annual coupon.

You engage in a cash-flow matching strategy.

How much in face value of the 1-year zero coupon bond do you purchase.

Reference no: EM132791432

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