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A firm has liabilities of SA in 5 years and B in 10 years and an asset that pays $700 at the end of the
A firm has liabilities of SA in 5 years and B in 10 years and an asset that pays $700 at the end of the year for each of the next 15 years. The portfolio is Redington immunized based on an annual effective interest rate of 6.2%. Find B. (a) 2540 (b) 3356 (c) 4172 (d) 4634 le) 5635 A firm has assets of SA in 2 years and $B in 8 years and a liability of $7000 in 5 years. The portfolio is fully immunized based on an annual effective interest rate of 3.5%. Find the difference B - A. (a) o (b) 270 (c) 609 id) 724 le) 860
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