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7 . 2 . 5 A liability of 1 is due at time 1 0 . An attempt is made to fully immunize this liability

7.2.5 A liability of 1 is due at time 10. An attempt is made to fully
immunize this liability at i0=.10 using two zero coupon bonds
of amounts At1 and At2 due at times t1 and t2, respectively. In
each of the following cases, solve for the two missing quantities
out of At1,At2,t1,t2, given the other two.
(a)t1=5,t2=15
(b)(i)t1=5,At1=.40
(ii)t1=5,At1=.70(no solution for t210)
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