Business, 11.12.2019 21:31 Talos02

You manage a pension fund that will provide retired workers with lifetime annuities. you determine that the payouts of the fund are (approximately) level perpetuities of$1 million per year. the interest rate is 10%. you plan to fully fund the obligationusing 5-year maturity and 20-year maturity zero-coupon bonds. a. how much market value of each of the zeros will be necessary to fund the plan ifyou desire an immunized position? b. what must be the face value of the two zeros to fund the plan.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 17:00

While information systems can be used to gain a strategic advantage, they have inherent risks. hershey foods, for example, crippled its halloween sales when its complex is system failed to support its supply and inventory needs during peak production season. this is an example of which specific is risk

Answers: 3

Answer

Business, 22.06.2019 04:10

What is the difference between secure bonds and naked bonds?

Answers: 1

Answer

Business, 22.06.2019 13:10

Paid-in-capital in excess of par represents the amount of proceeds a. from the original sale of common stock b. in excess of the par value from the original sale of common stock c. at the current market value of the common stock d. at the curent book value of the common stock

Answers: 1

Answer

Business, 23.06.2019 01:00

What is the average price for the cordless telephones (to 2 decimals)? $ b. what is the average talk time for the cordless telephones (to 3 decimals)? hours c. what percentage of the cordless telephones have a voice quality of excellent? % d. what percentage of the cordless telephones have a handset on the base?

Answers: 3

Answer

You know the right answer?

You manage a pension fund that will provide retired workers with lifetime annuities. you determine t...

Questions

Business, 04.09.2021 01:00

Choose the best scenario for refinancing....