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Imprudential, Inc., has an unfunded pension liability of $579 million that must be paid in 25 years. To assess the value of t

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Answer #1

Future value of the liability(FV) =$ 579 million = $579000000

no of years(n)= 25 years

discount rate(r) =7.2%

present value of the liability (PV)= FV/(1+r)n

=579000000/(1+.072)25

=$101757469

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