+1-415-670-9189
info@expertsmind.com
Pension plan is obligated to make disbursements
Course:- Financial Management
Reference No.:- EM131078242





Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Management

A pension plan is obligated to make disbursements of $2.7 million, $3.7 million, and $2.7 million at the end of each of the next three years, respectively. Find the duration of the plan's obligations if the interest rate is 10% annually. (Do not round intermediate calculations. Round your answer to 4 decimal places.)




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
Assume that long-term corporate bonds had an average return of 5.3 percent and a standard deviation of 9.3 percent for a 30-year period. What range of returns would you expect
You are examining balance sheets for 2012 and 2013 and you observe that a company's net fixed assets increased from $45 million to $50 million. The income staement states that
What is the risk premium for Litchfield Design stock if the stock has a beta of 1.28, the expected return on the market is 16.06 percent, the risk-free rate is 3.95 percent, a
Pragya borrows $10,000 for a term of 10 years at an effective annual interest rate of 12%. At the end of each year she makes annual interest payments and accumulates the princ
In 1991, Mario Smith and Luigi Joseph signed a lease for 3960 South State Street in Philadelphia, Pennsylvania. Joseph paid $6,000 for the first and last month's rent, and sai
Suppose you bought a house and took out a mortgage for $50,000. The interest rate is 8 percent, and you must amortize the loan over 10 years with equal end-of-year payments. C
Consider a three-year project with the following information: initial fixed asset investment = $860,000; straight-line depreciation to zero over the five-year life; zero salva
Nancy Cotton bought Nu Talk for $15 per share. One year later, Nancy sold the stock for $21 per share, just after she received a $0.90 cash dividend from the company. What tot