Problem 8

Intro

A corporate pension plan has to make the following payments over the next few years:

Year	1	2	3	4
Amount ($ million)	17	21	27	35

The appropriate interest rate is 6%.

Attempt 1/10 for 10 pts.

Part 1

What is the present value of the liability (in $ million)?

Submit

Attempt 1/10 for 10 pts.

Part 2

What is the duration of the liability?