* A corporate pension plan has to make the following payments over the next few years:

Year	1	2	3	4
Amount ($ million)	19	23	29	37

The appropriate interest rate is 8%.

a. What is the duration of the liability?

b. What is the duration of a perpetuity if the yield is 8%?

c. The fund wants to immunize its interest rate risk by investing in a perpetuity and a 1-year zero coupon bond. To do so, how much should it invest in the perpetuity (in $ million)?

*You have a bond with a modified duration of 10.67 years currently. The convexity of the bond is 166.

Assuming the bond's yield changes from 8.4% to 9.9%, use duration and convexity to determine the approximate percentage change in the bond's price. Enter your answer as a decimal, not as a percentage.