Question
My pension plan will pay me $16,500 once a year for a 10-year period. The first payment will come in exactly 5 years. The pension
My pension plan will pay me $16,500 once a year for a 10-year period. The first payment will come in exactly 5 years. The pension fund wants to immunize its position.
a. | What is the duration of its obligation to me? The current interest rate is 12.0% per year. (Do not round intermediate calculations. Round your answer to 4 decimal places.) Duration = ?
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