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In the realm of finance, we often come across the term "liability-matching models". These models operate under the assumption that both the liability payments and the asset cash flows are known with absolute certainty. This approach stands in contrast to stochastic models, which take into consideration the unpredictable nature of financial markets. By understanding and comparing these two models, we can gain a deeper understanding of risk management and asset allocation strategies. Let's explore the intricacies and implications of these models in the world of finance.