Present value of its liabilities

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The DataSoft Corporation has an employee pension scheme with a fixed liabilities and a long time horizon reflecting its young workforce. The fund's assets are $9 billion and the present value of its liabilities is $8.8 billion. Which of the following statements is incorrect?

The present value of long-term fixed payments behaves very much like a long position in a fixed-rate bond

Surplus at Risk is a measure of relative risk

The DataSoft Corporation will be able to immunize its liabilities by investing $8 billion in long-term fixed-rate bonds

a. I, II and III

b. I and III

c. II and III

d. I and II

Reference no: EM132527558

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