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A company has to pay $100 million 4 years from now. The current market rate of interest is 5.5%. The company uses the following 4

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A company has to pay $100 million 4 years from now. The current market rate of interest is 5.5%. The company uses the following 4 year bond to fund the liability: - Bond price =101.7526 million - Face Value =100 million - The price is 101.7526% of the FV Is the bond sufficient to meet the liability when there is an immediate one-time change in interest rate to (a) 5%, and (b) 6%

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