Exercise 4.2.8 Start with a bond whose PV is equal to the PV of a future liability

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Exercise 4.2.8 Start with a bond whose PV is equal to the PV of a future liability and whose MD exceeds the horizon. Show that, at the horizon, the bond will fall short of the liability if interest rates rise and more than meet the goal if interest rates fall. The reverse is true if the MD falls short of the horizon.

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