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Business, 07.05.2021 15:20 theldunn

Company FM_2 must pay 100,000 in 4 years. In order to fully immunize from changes in interest rate, the company invests in a 3 year zero coupon bond that matures for 45,000 and a 5 year zero coupon bond that matures for X. The actuary for Company FM_2 determined that their portfolio fully immunized their ability to meet their obligations at the current interest rate i. Calculate i. A. 5.0%
B. 7.8%
C. 10.0%
D. 10.5%
E. 11.1%

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Company FM_2 must pay 100,000 in 4 years. In order to fully immunize from changes in interest rate,...
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