A pension plan is obligated to make disbursements of $1.3 million, $2.3 million, and $1.3 million...
A pension plan is obligated to make disbursements of $1.3 million, $2.3 million, and $1.3 million at the end of each of the next three years, respectively. The annual interest rate is 12%. If the plan wants to fully fund and immunize its position, how much of its portfolio should it allocate to one-year zero-coupon bonds and perpetuities, respectively, if these are the only two assets funding the plan
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A pension plan is obligated to make disbursements of $1.3
million, $2.3 million, and $1.3 million...
A pension plan is obligated to make disbursements of $20 million $3.0 million, and $20 million...
A pension plan is obligated to make disbursements of $20 million $3.0 million, and $20 million at the end of each of the next three years, respectively. The annual interest rate is 11%. If the plan wants to fully fund and immunize its position, how much of its portfolio should it allocate to one year zero-coupon bonds and perpetuities, respectively, if these are the only two assets funding the plan? (Do not round intermediate calculations. Round your answers to 2...
A pension fund has an average duration of its liabilities equal to 13 years. The fund...
A pension fund has an average duration of its liabilities equal
to 13 years. The fund is looking at 4-year maturity zero-coupon
bonds and 5% yield perpetuities to immunize its interest rate risk.
How much of its portfolio should it allocate to the zero-coupon
bonds to immunize if there are no other assets funding the
plan?
Questlon 1 (of 80) 1 A pension fund has an average duration of its liabilities equal to 13 years. The fund is looking at...
A pension fund has an average duration of its liabilities equal to 15 years. The fund...
A pension fund has an average duration of its liabilities equal to 15 years. The fund is looking at 5-year maturity zero-coupon bonds and 4% yield perpetuities to immunize its interest rate risk. How much of its portfolio should it allocate to the zero-coupon bonds to immunize if there are no other assets funding the plan? Write in percentages.
A pension fund has an average duration of its liabilities equal to 15 years. The fund...
A pension fund has an average duration of its liabilities equal to 15 years. The fund is looking at 5-year maturity zero-coupon bonds and 4% yield perpetuities to immunize its interest rate risk. How much of its portfolio should it allocate to the zero-coupon bonds to immunize if there are no other assets funding the plan? Write in percentages.
A pension plan is obligated to make disbursements of $4 million, $3 million, and $7 million...
A pension plan is obligated to make disbursements of $4 million, $3 million, and $7 million at the end of each of the next three years, respectively. Find the duration of the plan's obligations if the interest rate is 17.0% annually. (Round your answer to 4 decimal places.) Duration years
A pension plan is obligated to make disbursements of $2.0 million, $3.0 million, and $2.0 million...
A pension plan is obligated to make disbursements of $2.0 million, $3.0 million, and $2.0 million at the end of each of the next three years, respectively. Find the duration of the plan's obligations if the interest rate is 11% annually. *the solution gives a table but I'm unsure how to figure out pv. explanation on financial calculator would be helpful.
The geometric average of −19%, 40%, and 45% is _________. 34.18% 22.00% 18.03% 16.50% Some answers...
The geometric average of −19%, 40%, and 45% is _________. 34.18% 22.00% 18.03% 16.50% Some answers said 18.03% and some said 34.18%. i need the right answer 100% please. A pension fund has an average duration of its liabilities equal to 18 years. The fund is looking at 6-year maturity zero-coupon bonds and 4% yield perpetuities to immunize its interest rate risk. How much of its portfolio should it allocate to the zero-coupon bonds to immunize if there are no...
Q. You manage a pension fund that will provide retired workers with lifetime annuities. You determine...
Q. You manage a pension fund that will provide retired workers with lifetime annuities. You determine that the payouts of the fund are essentially going to resemble level perpetuities of $1 million per year. The interest rate is 10%. You plan to fully fund the obligation using 5-year and 20-year maturity zero-coupon bonds. a. How much market value of each of the zeros will be necessary to fund the plan if you desire an immunized position? b. what must be...
My pension plan will pay me $10,500 once a year for a 10-year period. The first...
My pension plan will pay me $10,500 once a year for a 10-year period. The first payment will come in exactly five years. The pension fund wants to immunize its position. a. What is the duration of its obligation to me? The current interest rate is 5.0% per year. (Do not round intermediate calculations. Round your answer to 4 decimal places.) Duration=9.0990 b. If the plan uses 5-year and 20-year zero-coupon bonds to construct the immunized position, how much money...
My pension plan will pay me $17,000 once a year for a 10-year period. The first...
My pension plan will pay me $17,000 once a year for a 10-year period. The first payment will come in exactly five years. The pension fund wants to immunize its position. a. What is the duration of its obligation to me? The current interest rate is 11.0% per year. (Do not round intermediate calculations. Round your answer to 4 decimal places.) b. If the plan uses 5-year and 20-year zero-coupon bonds to construct the immunized position, how much money ought...
A pension plan is obligated to make disbursements of $20 million $3.0 million, and $20 million at the end of each of the next three years, respectively. The annual interest rate is 11%. If the plan wants to fully fund and immunize its position, how much of its portfolio should it allocate to one year zero-coupon bonds and perpetuities, respectively, if these are the only two assets funding the plan? (Do not round intermediate calculations. Round your answers to 2...
A pension fund has an average duration of its liabilities equal
to 13 years. The fund is looking at 4-year maturity zero-coupon
bonds and 5% yield perpetuities to immunize its interest rate risk.
How much of its portfolio should it allocate to the zero-coupon
bonds to immunize if there are no other assets funding the
plan?
Questlon 1 (of 80) 1 A pension fund has an average duration of its liabilities equal to 13 years. The fund is looking at...
A pension fund has an average duration of its liabilities equal to 15 years. The fund is looking at 5-year maturity zero-coupon bonds and 4% yield perpetuities to immunize its interest rate risk. How much of its portfolio should it allocate to the zero-coupon bonds to immunize if there are no other assets funding the plan? Write in percentages.
A pension fund has an average duration of its liabilities equal to 15 years. The fund is looking at 5-year maturity zero-coupon bonds and 4% yield perpetuities to immunize its interest rate risk. How much of its portfolio should it allocate to the zero-coupon bonds to immunize if there are no other assets funding the plan? Write in percentages.
A pension plan is obligated to make disbursements of $4 million, $3 million, and $7 million at the end of each of the next three years, respectively. Find the duration of the plan's obligations if the interest rate is 17.0% annually. (Round your answer to 4 decimal places.) Duration years
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