14. A fund must make payment of $50,000 at the end of the 6th, 8th and 10th years. Show that if interest rate is currently 5% per annum, immunization to small changes in interest rate can be achieved by holding an appropriately chosen combination of a 5-year zero-coupon bond and a 9-year zero-coupon bond. [Total: 10 marks] 14. A fund must make payment of $50,000 at the end of the 6th, 8th and 10th years. Show that if interest rate is currently 5% per annum, immunization to small changes in interest rate can be achieved by holding an appropriately chosen combination of a 5-year zero-coupon bond and a 9-year zero-coupon bond. [Total: 10 marks]