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Please help You will be attending an MBA program that will require paying $11,000 a year in tuition expenses at the end of the yearfor

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You will be attending an MBA program that will require paying $11,000 a year in tuition expenses at the end of the yearfor 2 years. Bonds currently yield 8.35%. a What is the present value of your obligation ? (sample answer: $25,000) b What is the duration of your obligation ? (sample answer: 2.53 years) c Suppose you wish to fund your obligation using 'l-yearzero-coupon bonds and perpetuity bonds. How much ofl-year zero in dollar (input example: $25,000) and how much of perpetuity bonds in dollar (sample answer: $25,000) will you want to hold to both fully fund and immunize your obligation? Suppose you buy 1-year zero-cou pon bonds and perpetuity bonds to immunize your obligation. Now suppose that rates immediately increase to 9%. e. What is your tuition obligation now? (sample answer: $25,000) f. What is the value of your position in 1-year-zero-coupon bonds now ? (sample answer: $25,000) g. What is the value of your position in perpetuity now ? (sample answer: $25,000)

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