What is the present value of the liability(in $ million)? A corporate pension plan has to make

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

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A corporate pension plan has to make the following payments over the next few years: Year 1 2 3 4 Amount ($ million) 23 27 33 41 The appropriate interest rate is 6%. A corporate pension plan has to make the following payments over the next few years: Year 1 2 3 4 Amount ($ million) 23 27 33 41 The appropriate interest rate is 6%.

Answer rating: 100% (QA)

To calculate the present value of the liability we need to discount each payment to its present valu... View the full answer