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Suppose a fund manager is committed to making annual payments of $35,000 for the next 20 years (an annuity) and they use a discount rate
Suppose a fund manager is committed to making annual payments of $35,000 for the next 20 years (an annuity) and they use a discount rate of 0.04 or 4 % pa.
- (a) What is the Present Value of these payments? Calculate the Macauley Durations and Convexity.
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