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A company buys a 2-year zero coupon bond that will mature for $10,000. It plans to use this asset to make two payments to a

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A company buys a 2-year zero coupon bond that will mature for $10,000. It plans to use this asset to make two payments to a customer, the first in one year and the second in 10 years. (a) Determine the amounts of the payments in order to satisfy the first two conditions of Redington immunization if the effective annual rate of interest is 8%. (b) If the company buys the bond and guarantees the two payments in (a), has it achieved Redington immunization

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