Question: Problem 16-12 You will be paying $8,400 a year in tuition expenses at the end of the next two years. Bonds currently yield 10%. a.

Problem 16-12 You will be paying $8,400 a year in tuition expenses at the end of the next two years. Bonds currently yield

Problem 16-12 You will be paying $8,400 a year in tuition expenses at the end of the next two years. Bonds currently yield 10%. a. What is the present value and duration of your obligation? (Do not round intermediate calculations. Round "Present value" to 2 decimal places and"Duraion" to 4 decimal places.) Present value Duration years b. What maturity zero-coupon bond would immunize your obligation? (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Face value" to 2 decimal places.) Duration years Face value

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