Use this information for the following 4 questions. You will be paying $20,000 a year in tuition expenses at the end of the next 2 years. Bonds currently yield 6%.

a) What is the present value of your obligation? ( Answer format: 1010.20, include no $ symbol, round to 2 digits.)

b) What is the duration of your obligation? ( answer format: 5.24, round to 2 digits.)

c) You buy a zero-coupon bond which immunizes your obligation. What is its par (or redemption) value? ( Answer format: 1010.20, include no $ symbol, round to 2 digits.)

d) After you buy the zero-bond that immunizes your obligation, the rates immediately increase to 7%. What happens to your net position, that is, what is the difference between the value of the bond and that of your tuition obligation? ( Answer format: -10.20, include +/- sign, include no $ symbol, round to 2 digits.)