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Business, 11.05.2021 16:20 Guest4747

A liability consists of a series of 15 annual payments of 35,000 with the first payment to be made one year from now. The assets available to immunize this liability are five-year and ten-year zero coupon bonds. The annual effective interest rate used to value the assets and the liability is 6.2%. The liability has the same present value and duration as the asset portfolio. Calculate the dollar amount invested in the five-year zero-coupon bonds.

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