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Problem #14: Liability payments of $482, $317, and $499 each due to be paid in 2, 5 and 7 years from now, respectively. [3 marks]

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Problem #14: Liability payments of $482, $317, and $499 each due to be paid in 2, 5 and 7 years from now, respectively. [3 marks] Asset cash-flow consists of A, and A in 4 year and 6 years from now, respectively. If the yield curve of for all maturities is 11%, find Aj and A2 that ensures an Asset-Liability matching. (a) What is the value of A1? (b) What is the value of Az? (A) 459.24 (B) 459.22 (C) 459.28 (D) 459.26 (E) 459.20 Problem #14(a): Select 1 Part (a) choices. (A) 967.34 (B) 967.30 (C) 967.28 (D) 967.32 (E) 967.26 Problem #14(b): Select 1 Part (b) choices. Problem #14: Liability payments of $482, $317, and $499 each due to be paid in 2, 5 and 7 years from now, respectively. [3 marks] Asset cash-flow consists of A, and A in 4 year and 6 years from now, respectively. If the yield curve of for all maturities is 11%, find Aj and A2 that ensures an Asset-Liability matching. (a) What is the value of A1? (b) What is the value of Az? (A) 459.24 (B) 459.22 (C) 459.28 (D) 459.26 (E) 459.20 Problem #14(a): Select 1 Part (a) choices. (A) 967.34 (B) 967.30 (C) 967.28 (D) 967.32 (E) 967.26 Problem #14(b): Select 1 Part (b) choices

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