1. Discuss the pros and cons of using duration matching immunization.
2. Future Value Compute the future value in year 9 of a $280 deposit in year 1 and another $80 deposit at the end of year 4 using a 8% interest rate.
3. Jane borrowed $78,000 from Cheatham Loan Company for 3 years. The loan has an annual interest rate of 7.9 percent, requires quarterly payments,and interest is calculated on an add-on basis. How much is each payment? Show your answer to the nearest dollar.