The institution aims to immunise a liability of $100 million with a target duration of 8 years, using two securities: (1) the coupon bond maturing on 12/5/2026; and, (2) a perpetuity with a yield of 6%. B. How much of the coupon bond and the perpetuity will you hold in your portfolio? (5 marks) C. Three years later, the yield curve remains unchanged. Is your portfolio still immunised? Explain. Hint: You don't need to do any calculations here. (3 marks) The institution recently considers a risky investment which generates $10mil every year, starting from 12/5/2023 for the next 4 years. The investment costs $33mil today. Your credit model assigns the investment cash flows a constant risk premium of 2% on top of the (risk-free rate) pure yield curve across maturities. D. What is the net present value of the risky investment? Will you invest? (4 marks) The institution aims to immunise a liability of $100 million with a target duration of 8 years, using two securities: (1) the coupon bond maturing on 12/5/2026; and, (2) a perpetuity with a yield of 6%. B. How much of the coupon bond and the perpetuity will you hold in your portfolio? (5 marks) C. Three years later, the yield curve remains unchanged. Is your portfolio still immunised? Explain. Hint: You don't need to do any calculations here. (3 marks) The institution recently considers a risky investment which generates $10mil every year, starting from 12/5/2023 for the next 4 years. The investment costs $33mil today. Your credit model assigns the investment cash flows a constant risk premium of 2% on top of the (risk-free rate) pure yield curve across maturities. D. What is the net present value of the risky investment? Will you invest? (4 marks)