please help answer a-d

The current value of Montclair State's endowment is $1,190,910. The endowment's cIo want to invest the assets in a fixed income portfolio so that the net equity has an interest rate exposure equal to that of a 2-year zero - e.g. Dmav=2. The current term structure is flat at 108 for all maturities. a. What is the present value of the liabilities? Hint: there is a long way and a short way to do this problem. To simplify your calculations, you should consider the net cash flows in each year of the initiatives and the forward contracts before you begin. b. What is the delta (dollar duration $ ) and Macaulay duration ( Dmac ) of Montclair's committed initiatives and three forward contracts? c. What is the present value of the endowment less its committed initiatives and forward contracts? d. What is the required Macaulay duration of the endowment's fixed income assets needed to achieve the desired Macaulay duration of the net equity? (i.e. Equity Dmac=2 )