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9. A company must make payments of $10 annually in the form of a 10-year annuity immediate. The company will receive two payments in turn,
9. A company must make payments of $10 annually in the form of a 10-year annuity immediate. The company will receive two payments in turn, one at the end of year 2 and the other at the end of year 9. At an annual effective rate of 10%, the first two conditions for Redington's immunization are met. Determine whether immunization to small changes in interest rates on either direction of 10% can be achieved. 9. A company must make payments of $10 annually in the form of a 10-year annuity immediate. The company will receive two payments in turn, one at the end of year 2 and the other at the end of year 9. At an annual effective rate of 10%, the first two conditions for Redington's immunization are met. Determine whether immunization to small changes in interest rates on either direction of 10% can be achieved
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