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Consider the following asset and liability payments: Liability: payments of $1000 at the end of year-1, $2000 at the end of year-2, $3000 at A
Consider the following asset and liability payments: Liability: payments of $1000 at the end of year-1, $2000 at the end of year-2, $3000 at A the end of year-3. Asset: payment of A2 at the end of year-2, and A3 at the end of year-3. Suppose asset and liability have the same present value and modified duration at an annual effective interest rate of 3%, calculate A2+A3 to the nearest $1
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