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Acompanybuysa5-yearzerocouponbondthatwillmaturefor$1,800.It plans to use this asset to make two liability payments to a customer, the first payment of $307.73 in one year and the second
Acompanybuysa5-yearzerocouponbondthatwillmaturefor$1,800.It plans to use this asset to make two liability payments to a customer, the first payment of $307.73 in one year and the second payment $1497.60 in 6 years. Given an effective annual interest rate is 4%, which Redington immunization conditions are achieved?
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