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An insurance company must make payments to a customer of £10 million in one year and £4 million in five years. The yield
Posted: Wed May 18, 2022 11:29 pm
by answerhappygod
- An Insurance Company Must Make Payments To A Customer Of 10 Million In One Year And 4 Million In Five Years The Yield 1 (16.62 KiB) Viewed 29 times
An insurance
company must make payments to a customer of £10 million in one year and £4 million in five years. The yield curve is flat at 10%. If it wants to fully fund and immunize its obligation to this customer with a single issue of a zero- coupon bond, what maturity bond must it purchase?