Does this investment program satisfy the conditions for


A company owes 150 at time 2, 200 at time 3, and 300 at time 4. The company plans to meet the obligation with an investment program that produces asset cashflows of A1 at time 1 and A3 at time 3. The effective rate of interest is 4%

(1) Find A1 and A3. 1 2

(2) Does this investment program satisfy the conditions for Redington immunization?

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Financial Management: Does this investment program satisfy the conditions for
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