Question
9. [10 points] A company has liabilities that require it to make payments of 1500 at the end of each of the next five years.
9. [10 points] A company has liabilities that require it to make payments of 1500 at the end of each of the next five years. The only investments available to the company are as follows: Investment Price Subsequent Cash Flows |J 800 500 at the end of each year for 5 years K 500 1500 at the end of year 5 L 1000 750 at the end of each year for 4 years IM 3500 1500 at the end of each year for 5 years The company is able to purchase as many of each investment as it wants, but only in whole units. The company's investment objective is to be fully immunized over the next five years
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