Assume the term structure of the interest rate is flat at $5\%.$ There are two zero$-$coupon bonds available:

Suppose you have a liability that requires you to pay $$100$ in year $4$ and another $$100$ in year $8,$ and you want

to immunize your positions by using Bond A and Bond $B.$ What is your portfolio weight in Bond A and $B$ ond $B,$

respectively?

a$.17\%,83\%$

b$.40\%,60\%$

c$.83\%,17\%$

d$.53\%,47\%$

Clear my choice