Question
show work* Consider a payment of $400 in one year, $600 in three years and $1000 in five years. Interest is 10% per year. a)
show work*
Consider a payment of $400 in one year, $600 in three years and $1000 in five years. Interest is 10% per year.
a) To offset the above liabilities, you have an incoming cash flow of X at time t. Find X and t so that the first two conditions of Redington Immunization holds. Round X to .xx and t to .xxx
b) Is Redington Immunization achieved?
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Price Theory and Applications
Authors: Steven Landsburg
9th edition
1285423526, 978-1285947877, 1285947878, 978-1285423524
