You currently manage a fund which has a series of obligations due in future years. The first amounts to $58,750, which is due in 3 years. The second payment is due in 4 years, and amounts to $72,900. The third payment is due in 6 years, and is worth $101,650, and the final payment, due in 7 years, amounts to $99,200.
You would like to ensure that your fund is able to meet these liabilities, so you decide to formulate an immunisation strategy to ensure this can take place. The yield to maturity is 5% p.a.

Required:
i. What would be the maturity of a single zero-coupon bond, which would immunise the overall obligation? What is the face value of this bond? 
ii. What happens to your net position, if bond yields changed immediately to 4% p.a.? 
iii. You have identified two bonds which you would like to use as part of an immunisation strategy. The first is a 5% coupon bond which pays coupons semi-annually, and 2 years to maturity, and a face value of $1000. The second is a zero-coupon bond with 6 years until maturity, and a face value of $1000. Calculate the weighting and amount you would need to invest in each of the  bonds, in order to immunise the overall obligation. Assume for this part, that bond yields are 5% p.a.