If the relevant discount rate is 6 percent what is the


Imprudential, Inc., has an unfunded pension liability of $675 million that must be paid in 25 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present

Required:

If the relevant discount rate is 6 percent, what is the present value of this liability?

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Financial Management: If the relevant discount rate is 6 percent what is the
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