Please refer to Question 3 on P432 in Volume 2. (Q3 of EOC questions in Reading 20)
1-What is liability duration? I thought that liability duration was an indicator of the maturity of a plans liabilities. How can gwartney have a liability duration of only 10 years and at the same time have a young workforce?
2- Can someone please explain question 1 to me. The explanation is still confusing. |