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| rev | Admin | (Created page with "'''Solution: A''' Let <math>h(i)</math> be the present value of the cash flows. For Redington immunization, the value of the function and its first derivative at <math>25 \%</math> must be zero and the second derivative must be positive. <math>\mathrm{X}</math> is immunized because: <math display = "block"> \begin{aligned} & h(0.25)=102,400-192,000 / 1.25+100,000 / 1.25^3=0 \\ & h^{\prime}(0.25)=192,000 / 1.25^2-100,000(3) / 1.25^4=0 \\ & h^{\prime \prime}(0.25)=-192,00...") | Nov 20'23 at 21:37 | +1,005 |