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You will be paying $ 8 , 0 0 0 a year in tuition expenses at the end of the next two years. Bonds currently

You will be paying $8,000 a year in tuition expenses at the end of the next two years. Bonds currently yield 8%.Required:
What are the present value and duration of your obligation?
What maturity zero-coupon bond would immunize your obligation?
Suppose you buy a zero-coupon bond with value and duration equal to your obligation. Now suppose that rates immediately increase to 10%. What happens to your net position, that is, to the difference between the value of the bond and that of your tuition obligation?What if rates fall immediately to 7%?

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