A owes B S1100 at the end of one year and is required to set up an investment fund in

order to meet this obligation. The only investments available are a money market fund

earnings 10% currently with the rate changing daily and two-year zero coupon bonds

also earning 10%. Develop an investment program based on immunization. Assume the

effective rate of interest is equal to 10% in all calculations.

(1) Draw a diagram to explain the topic (10%)

(2) Describe and list using the numbers of the topics.

(3) List and explain the calculation process (40% )