Question: The answer is (a) 45.69 (b) 4.72% Please show step by step and formulas used. Problem 53.6 You are given the following yield curve Length

The answer is (a) 45.69 (b) 4.72% Please show step by

The answer is (a) 45.69 (b) 4.72%

Please show step by step and formulas used.

Problem 53.6 You are given the following yield curve Length of investment Interest Rate 1 0.040 2 0.045 3 0.048 4 0.050 5 0.051 (a) Calculate the present value of an annuity due of 10 at the beginning of each year for 5 years using the spot rates. (b) Calculate the equivalent level rate

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