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A company owes $ 10000 to be paid at times 2, 4, and 6. The company plans to meet the obligation with an investment program that produces asset cash flows of X at time 1 and Y at time 5. The effective rate of interest is 10%.

Determine X and Y.

Does this investment program satisfy the conditions for immunization?

Financial Management, Finance

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  • Reference No.:- M92171367

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