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Questions 1. A pension fund manager knows that the following liabilities must be satisfied: Years from Now Liability (in millions) 1 $35.2 2 $44.3 3
Questions 1. A pension fund manager knows that the following liabilities must be satisfied: Years from Now Liability (in millions) 1 $35.2 2 $44.3 3 $28.7 4 $66.4 Suppose that the pension fund manager wants to invest a sum of money that will satisfy this liability stream. Assuming that any amount that can be invested today can earn an annual interest rate of 3.25%, how much must be invested today to satisfy this liability stream? (5 points)
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