1. Describe the concept underlying immunization relating duration to the discussion? ( Please write a full answer of this question don't just give me definitions)
2. Discuss the concept of cash matching or on a multi-period basis, dedication, relating duration to your answer? Also, what does ( interpreting the term structure ) suggests to a professional investor?
3. You are considering an annuity which costs $73,100 today. The annuity pays $5,400 a year. The rate of return is 6 percent. What is the length of the annuity time period? (Do not round intermediate calculations.)