Assume a liability that consists of making two payments: $5,000 in 5 years and $5,000 in 10 years. Suppose that you can only use 3-year and 15-year…

f) What is the discrepancy in durations between your lability and immunization portfolio at the beginning of year 9?

g) Suppose at the beginning of year 4, 2-year zero coupon bond is available on the market. To rebalance your immunization portfolio, how many shares of this 2-year zero coupon you need to purchase? Assume the current YTM (BEY) is still 8 %.