You have an obligation with a Present Value of $147000.00 and a duration of 6.30 years.

There are 2-zero coupon bonds that you might use to duration-immunize a portfolio. A short-term bond with a maturity of 3 years and a long-term bond with a maturity of 19 years.

The prevailing interest rate on all bonds and your obligation is constant at 5.90%.

You will buy both the short-term bond and the long-term bond to duration immunize your portfolio.

What amount of money should you spend on the long-term bond to duration immunize your obligation (ie: what present value of the long-term bond will you purchase).