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A corporate pension plan has to make the following payments over the next few years: Year 1 2 3 4 Amount ($ million) 17 21

A corporate pension plan has to make the following payments over the next few years:

Year 1 2 3 4
Amount ($ million) 17 21 27 35

The appropriate interest rate is 6%.

Part 1

What is the present value of the liability (in $ million)?

Part 2

What is the duration of the liability?

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