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Problem 20. An insurance company has determined that the company has a liability of $10000 that will be payable in seven years. The company has

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Problem 20. An insurance company has determined that the company has a liability of $10000 that will be payable in seven years. The company has two choices of assets to invest in: a 5-year zero-coupon bond and a 10-year zero coupon bond. The interest rate is 5%. How can the actuarial department immunize its portfolio

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