Your liabilities are the payments you need to make to pensioners. Please describe: (i) How your position

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Your liabilities are the payments you need to make to pensioners.

Please describe:

(i) How your position could be affected by interest rate fluctuations, specifically what the duration of your liabilities?

(ii) what types of derivative contracts you could use to best mitigate your interest rate risk?

Related Book For answer-question

Financial Markets and Institutions

ISBN: 978-1337099745

12th edition

Authors: Jeff Madura

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Posted Date: Mar 10, 2023 01:37 AM

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Your liabilities are the payments you need to make to pensioners. Please describe: (i) How your position

Question:

Expert Answer:

i Interest rate fluctuations can have a significant impact on pension funds liabilities The duration ... View the full answer

Financial Markets and Institutions

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