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Question A company buys a 5-year zero coupon bond that will mature for $1800. It plans to use this asset to make two liability
Question A company buys a 5-year zero coupon bond that will mature for $1800. 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? Possible Answers A 1st only B 2nd only C 1st and 2nd only D All three E None of them
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