A.RW Company (RW) has just issued a bond with 3 years time to maturity. The coupon rate is 7% p.a., paid annually and the face value of the bond is $1,000. The bond price is $1,054.47. Calculate the Macaulays duration of the bond of RW.

B.A bond portfolio manager has a bond portfolio with a current value of $4.3 million. He would like to achieve a target portfolio value of $5 million three years later by using contingent immunization approach. The interest rate is currently 5%. Can the portfolio manager use active portfolio management under the contingent immunization approach at this moment? Explain your answer.