Question: I already know the answer for the (a). Please answer (b). I will definitely upvote. Thank you! (F) | Liability payments of $100 each are

I already know the answer for the (a). Please answer (b).

I already know the answer for the (a). Please answer (b). I will definitely upvote. Thank you!

(F) | Liability payments of $100 each are due to be paid in 2,4 and 6 years from now. Asset cashflow consists of Aj in 1 year and A5 in 5 years. The flat term structure of rates is i = 10% (annual, effective). An attempt is made to have the asset cash flow immunize the liability cashflow by matching present value and duration. (a) Find A, and A5. (b) Determine whether or not the conditions for Redington immunization are satisfied. =

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