Question: Could you help giving me explanations on the following problem ? Thank you. Financial Math Liability payments of 100 each are due to be paid

Could you help giving me explanations on the following problem ? Thank you. Financial Math

Liability payments of 100 each are due to be paid in 2,4 and 6 years from now. Asset cashflow consists ofA1in 1 year andA5in 5 years. The yield for all payments is 10%. An attempt is made to have the asset cash flow immunize the liability cashflow by matching present value and duration.

(a) FindA1andA5

(b) Determine whether or not the conditions for Redington immunization are satisfied.

Please draw a timeline if possible.

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