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Jackie has four future liabirties, listed in the following table. Today, she has enough cash to cover the PV of all four future liabilifes. Jackie

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Jackie has four future liabirties, listed in the following table. Today, she has enough cash to cover the PV of all four future liabilifes. Jackie is concerned about icterest rate nisk. A (an) (increasa/decroaso) in interest fales will hut her current position and make her "unde--funded". Jackie chooses to use a duration matching to immunize her interast rate exposure. She finds 5TZCB and 21TZCB to be atractive for her hedging purposes. Al spot rales are given below. Compule the value and face value of the STZCB and 21TZCB that Jackie needs to buy to achieve her goals. Show your work and highlight your fnal answors: Q1: Without any intercet rat: bodes, a (an) Q2: To peoperty perforan a durabion maiching, lacke oocds to buy (provide four atswers): 1. STZCB: Market value = Face value = 2. 21TZCB : Markat value = Face value : For the toolbar, press ALT+F10 (PC) or ALT+FN+E10 (Mac)

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