You will be paying $$9,200$ a year in tuition expenses at the end of the next two years. Bonds currently yield $6\%.$

a$.$ What is 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 $8\%.$ What happens to your net position, that is$,$ to the difference between the value of the bond and that of your tuition obligation?

d$.$ What if rates fall immediately to $4\%?$

Complete this question by entering your answers in the tabs below.

Required A

Required B

Required C

What is the present value and duration of your obligation? $($Do not round intermediate calculations. Round "Present value" to $2$ decimal places and "Duration" to $4$ decimal places.$)$

$\backslash$table$[[,],[$Present value,$],[$Duration fors,$]]$