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A company owes $ 10000 to be paid at times 2, 4, and 6. The company plans to meet the obligation with an investment program
A company owes $ 10000 to be paid at times 2, 4, and 6. The company plans to meet the obligation with an investment program that produces asset cash flows at X at time 1 and Y at time 5. The effective rate of interest is 10%. (a) Determine X any Y. (b) Does this investment program satisfy the conditions for immunization? A company owes $ 10000 to be paid at times 2, 4, and 6. The company plans to meet the obligation with an investment program that produces asset cash flows at X at time 1 and Y at time 5. The effective rate of interest is 10%. (a) Determine X any Y. (b) Does this investment program satisfy the conditions for immunization
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