You will be paying $8,600 a year in tuition expenses at the end of the next two years. Bonds currently yield 7%. Required: a. What are the present value and duration of your obligation? b. What maturity zero-coupon bond would immunize your obligation? c. Suppose you buy a zero-coupon bond with value and duration equal to your obligation. Now suppose that rates immediately increase to 9%. What happens to your net position, that is, to the difference between the value of the bond and that of your tuitio obligation? d. What if rates fall immediately to 5%? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D What are the present value and duration of your obligation? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Present value Duration years