Question: Problem 8 Intro A corporate pension plan has to make the following payments over the next few years: Year 1 2 3 4 Amount ($

Problem 8

Intro

A corporate pension plan has to make the following payments over the next few years:

Year 1 2 3 4
Amount ($ million) 17 21 27 35

The appropriate interest rate is 6%.

Attempt 1/10 for 10 pts.

Part 1

What is the present value of the liability (in $ million)?

Submit
Attempt 1/10 for 10 pts.

Part 2

What is the duration of the liability?


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