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a 3. You have a commitment of $4,556,998 in 14 years. The ongoing annual interest rate in the market is 10%. You want to fund

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a 3. You have a commitment of $4,556,998 in 14 years. The ongoing annual interest rate in the market is 10%. You want to fund this commitment using 31-year zero-coupon bonds and perpetuities paying annual coupons. How much should be invested in the zeros and the perpetuities so that this commitment is immunized from interest rate risk? b. How should the investments in part a be adjusted in year 1 so that the immunization is maintained? a. a 3. You have a commitment of $4,556,998 in 14 years. The ongoing annual interest rate in the market is 10%. You want to fund this commitment using 31-year zero-coupon bonds and perpetuities paying annual coupons. How much should be invested in the zeros and the perpetuities so that this commitment is immunized from interest rate risk? b. How should the investments in part a be adjusted in year 1 so that the immunization is maintained? a

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