Question: After performing a simulation, you find that the present value of liabilities is as shown in the following table: Interest rate assumption Present value of
After performing a simulation, you find that the present value of liabilities is as shown in the following table: Interest rate assumption Present value of liabilities 6% $410 million 7% $365 million 8% $265 million What is the effective duration of the liabilities? How can this help a fund manager to structure their assets? (20 points)
can you please help with the second part
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