A pension fund is obligated to pat out $100,000 per year in perpetuity. When the relevant interest rate is 10%, what sho

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answerhappygod
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A pension fund is obligated to pat out $100,000 per year in perpetuity. When the relevant interest rate is 10%, what sho

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A pension fund is obligated to pat out $100,000 per year in perpetuity. When the relevant interest rate is 10%, what should be the maturity and face value of the zero-coupon bond the fund manager purchases to immunize its obligation?
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