Market value to changes in the market interest rate

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You have invested $500,000 in an ordinary annuity plan that is defined over the next fifteen years. The plan offers you a guaranteed effective annual rate of return of 10% but does not make any payments in the first five years. The annual payments start at the end of the sixth year and go on for ten years. What is the sensitivity of your plan’s market value to changes in the market interest rate?

Reference no: EM131459190

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