Cash Flow Matching Process

Hi All,

Can someone please explain how to calculate the which bond to select in terms of a cash flow matching liabilities.

This material is in Vol 4 pg. 48-50 but CFAI does not do a good job on explaining the concept.

It’s is a Time Value of Money problem that can be solved on the calculator but I dont know how to approach the problem.

Thanks.

Bumping this thread…