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(10 points) A company must pay the following liabilities at the end of the years shown: End of year Liability 2 1,000 4 6 X
(10 points) A company must pay the following liabilities at the end of the years shown: End of year Liability 2 1,000 4 6 X 1,000 The company achieves Redington immunization by purchasing assets that have two cash inflows: 733 at the end of one year and Y at the end of 5 years. The effective annual rate of interest is 10%. Calculate Y and test for the convexity condition of Redington immunization
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