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A World pension fund manager anticipates that benefits of 2 million per year must be paid to retirees. Retirements will not occur until 10 years
A World pension fund manager anticipates that benefits of 2 million per year must be paid to retirees. Retirements will not occur until 10 years from now at time t = 10. Once benefits begin to be paid, they will extend until t = 39 for a total of 30 payments. What is the present value of the pension liability if the appropriate annual discount rate for plan liabilities is 6 percent compounded annually?
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