Transcribed image text: 9. [10 points] A company has liabilities that require it to make payments of 1500 at the end of each of the next five years. The only investments available to the company are as follows: Investment Price Subsequent Cash Flows J 800 500 at the end of each year for 5 years IK 500 1500 at the end of IL 1000||750 at the end of each year for 4 years IM 3500 1500 at the end of each year for 5 years year 5 The company is able to purchase as many of each investment as it wants, but only in whole units. The company's investment objective is to be fully immunized over the next five years. Find all possible combination investments and their prices for immunization. 10.[10 points] A borrower takes out a 20-year loan for 400,000, with level end-of-month payments, at an annual nominal interest rate of 12% convertible monthly. Immediately after the 48th payment, the borrower decides to refinance the loan at an annual nominal interest rate of j, convertible monthly. The remaining term of the loan is kept at twelve years, and level payments continue to be made at the end of the month. However, each payment is now 400 lower than each payment from the original loan. Calculate j. Attach File Browse My Computer Browse Content Collection Transcribed image text: 9. [10 points] A company has liabilities that require it to make payments of 1500 at the end of each of the next five years. The only investments available to the company are as follows: Investment Price Subsequent Cash Flows J 800 500 at the end of each year for 5 years IK 500 1500 at the end of IL 1000||750 at the end of each year for 4 years IM 3500 1500 at the end of each year for 5 years year 5 The company is able to purchase as many of each investment as it wants, but only in whole units. The company's investment objective is to be fully immunized over the next five years. Find all possible combination investments and their prices for immunization. 10.[10 points] A borrower takes out a 20-year loan for 400,000, with level end-of-month payments, at an annual nominal interest rate of 12% convertible monthly. Immediately after the 48th payment, the borrower decides to refinance the loan at an annual nominal interest rate of j, convertible monthly. The remaining term of the loan is kept at twelve years, and level payments continue to be made at the end of the month. However, each payment is now 400 lower than each payment from the original loan. Calculate j. Attach File Browse My Computer Browse Content Collection