NEED A PERFECT PAPER? PLACE YOUR FIRST ORDER AND SAVE 15% USING COUPON:

4.8/5

solution

You are working in the risk management unit of a pension fund.
The fund provides workers with defined benefits payments after they
retire. You estimate that you will need to pay a total $5
million per year over the next 30 years to meet your obligations.
The first payment is due exactly a year from today and the interest
rate is flat at 5%, annually compounded. The fund currently owns
assets worth $60 million.

Compute the present value of your future liabilities. Is your
pension fund underfunded and if so, by how much?

Compute the Macaulay and the modified duration of your
liabilities.

You’re worried about future changes in yields. You can invest in
two zero-coupon government bonds that have a maturity of 1-year and
30 year, respectively. How would you allocate your assets if you
want to immunize your exposure to interest rate risk? Calculate the
total amount invested in each of the two bonds.

Solution:

15% off for this assignment.

Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!

Why US?

100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

Original Writing

We complete all papers from scratch. You can get a plagiarism report.

Money Back

If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.

WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!