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You will be paying $10,200 a year in tuition expenses at the endof the next two years. Bonds currently yield 9%. a. What is thepresent value and duration of your obligation? (Do not roundintermediate calculations. Round "Present value" to 2 decimalplaces and "Duration" to 4 decimal places.) Present value $Duration years b. What is the duration of a zero-coupon bond thatwould immunize your obligation and its future redemption value? (Donot round intermediate calculations. Round "Duration" to 4 decimalplaces and "Future redemption value" to 2 decimal places.) Durationyears Future redemption value $ You buy a zero-coupon bond withvalue and duration equal to your obligation. c-1. Now suppose thatrates immediately increase to 10%. What happens to your netposition, that is, to the difference between the value of the bondand that of your tuition obligation? (Enter your answer as apositive value. Do not round intermediate calculations. Round youranswer to 2 decimal places.) Net position changes by $ c-2. What ifrates fall to 8%? (Enter your answer as a positive value. Do notround intermediate calculations. Round your answer to 2 decimalplaces.) Net position changes by $
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