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Business, 29.07.2020 22:01 Deagon83951

Suppose you work for a pension fund and the fund’s liabilities have a present value of 1,320M and a duration of 23 years. The pension fund owns the present value of its liabilities in cash with a duration of 0 years. How much do you have to invest into the NSC (Norfolk Inc.) century bond with a duration of 32 years to insure the pension fund against parallel shifts in the yield curve

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Suppose you work for a pension fund and the fund’s liabilities have a present value of 1,320M and a...
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