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A company has liability of $2000 due at the end of the second year. The company tries to buy two assets of A1 at time

A company has liability of $2000 due at the end of the second year. The company tries to buy two assets of A1 at time 1 and A9 at time 9 to immunize the portfolio. The interest rate is 8%.

a Determine A1, A9.

b Determine whether or not the portfolio is immunized

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