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Business, 12.08.2020 06:01 wulfredo67

Company FM2 must pay 100,000 in 4 years. In order to fully immunize from changes in interest rate, the company invests in a 3 year zero coupon bond that matures for 45,000 and a 5 year zero coupon bond that matures for X. The actuary for Company FM2 determined that their portfolio fully immunized their ability to meet their obligations at the current interest rate i. Calculate i.

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Company FM2 must pay 100,000 in 4 years. In order to fully immunize from changes in interest rate, t...
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