After reading the? Novy-Marz and Rauh paper regarding unfunded pension liabilities you decide to compute the total obligation of the state that you live in. After some research you determine that your? state's promised pension payments amount to $1.3billion dollars? annually, and you expect this obligation to grow at 2.3% per year. You determine that the riskiness of this obligation is the same as the riskiness of the? state's debt. Based on the pricing of that debt you determine that the correct discount rate for the? fund's liabilities is 3.3% per annum.? Currently, based on actuarial calculations using 8.3% as the discount? rate, the plan is neither over nor underfundeddash–the value of the liabilities exactly matches the value of the assets. What is the extent of the true unfunded? liability?
The present value of the unfunded liability is $X Billion (Round to two decimal places)