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2 . Imprudential, Inc., has an unfunded pension liability of $ 4 5 0 million that must be paid in 2 0 years. To assess

2. Imprudential, Inc., has an unfunded pension liability of $450 million that must be paid in 20 years. To assess the value of the firms stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 5.2 percent compounded monthly, what is the present value of this liability?
3.At 4.3 percent interest compounded quarterly, how long does it take to double your money? To quadruple it?
4.Consider the following cash flow stream:
t=0: $200
t=1: $300
t=2: $300
t=3: $400
t=4: $150
t=5: $250
If the discount rate is 4%, what is today's value of this stream of cash flows?
5. Suppose that you wish to save $20,0000 by making the following deposits:
t=0: $2000
t=1: $3000
t=2: $3000
t=3: $4000
t=4: $1500
t=5: $2500
What must the interest be (or what is the implied interest rate)?

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