A person wins $1 million in the state lottery. Actually, the person receives $50,000 per year every September 1st. Using a 10 percent discount rate and the bonds table, construct a cash-matched dedicated portfolio that will service this need
Company maturity (years) coupon % price yield to maturity%
ABC 4 10 98 10.63
DEF 8 9 87 11.53
GHI 22 11 102 10.76
JKL 28 10 90 11.17