A company faces a stream of obligations over the next 5 years as shown below, where the numbers denote thousands of dollars.

Year	1	2	3	4	5
	0	200	0	0	600

The spot rate curve is given below:

Year	1	2	3	4	5	6	7	8	9	10
Spot Rate	6.68	7.27	7.81	8.31	8.75	9.16	9.52	9.85	10.15	10.42

The company decides to invest in two bonds (each with face value $1,000) described as follows:

Bond 1 is a 2-year zero coupon bond, and

Bond 2 is a 4-year 7% coupon bond.

(a) Calculate the prices of the two bonds and the obligation. (Keep 2 decimal places)

Bond 1: Bond 2: Obligation:

(b) Calculate the quasi-modified durations for the two bonds and the obligation. (Keep 2 decimal places)

Bond 1: Bond 2: Obligation:

(c) Find a portfolio P₁x₁ + P₂x₂, where x₁ and x₂ denote the number of units of bonds 1 and 2, that has the same present value as the obligation stream and is immunized against a parallel shift in the spot rate curve. (Keep 2 decimal places)

x₁: x₂: