A portfolio manager wishes to immunize the portfolio from interest rate risk. The assets are $24,000,000 with a duration of 10 years; there is $16,000,000 in liabilities. You have 2 liability choices of: 1) a zero coupon bond yielding 6% and a maturity of 14 years and 2) a 199 year bond yielding 6.67%. How much would you recommend for each type of liability?

A firm has $20,000,000 in assets and $14,000,000 in liabilities. The assets have an average duration of 7 years. It has two investment choices: 1) a zero coupon bond yielding 7.5 percent and maturing in 9 years and 2) a 199 year bond yieling and paying 10 percent. In order to immunize the firm from interest rate risk, what amounts in each do you recommend?