Suppose that we are in $2022$ and the insurer has to make a guaranteed payment to a policyholder in five years, $2027.$ For simplicity, we assume that this target guaranteed payment is $$1,469,$ a lump$-$sum policy payout on retirement, equivalent to investing $$1,000$ at an annually compounded rate of $8$ percent over five years. How can the insurer immunise against the interest rate risk?