Question: Can i get a,b and c solved step by step please (not excel) 10. You will be paying $34,000 a year in tuition expenses at

Can i get a,b and c solved step by step please (not excel)

10. You will be paying $34,000 a year in tuition expenses at the end of the next two years. Bonds currently yield 10%. (20 points) a. What is the present value and duration of your obligation? b. What maturity zero-coupon bond would immunize your obligation? c. Suppose you buy a zero-coupon bond with value and duration equal to your obligation. Now suppose that rates immediately increase to 11%. what happens to your net position, that is, to the difference between the value of the bond and that of your tuition obligation? what if rates fall to 9%

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