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You are thinking of pursuing an actuarial career, so you have agreed to serve as an intern at Love Actuaries LLP.

The managing partner, Karen Thompson, has asked you to do some quick calculations for her. She wants you to use the current yield curve, flat at 4%, in your calculations.

per year, starting one year from today. The pension obligation will end in 35 years. Karen war

to know the duration of these required pension payments.

Client Colin Limited's pension plan obligation has a duration of 14 and a convexity of

Colin's immunization strategy will use 3 bonds, issued by firms named Eleonore, Frissel, and Greta, respectively.

The bonds have the following parameters:

Eleonore: Duration: 8 Convexity: 28

Frissel: Duration: 20 Convecity: 30

Greta: Duration: 25 Convexity: 45

What weights should Ms. Thompson reccomend for Colin's strategy?

You are thinking of pursuing an actuarial career, so you have agreed to serve as an intern at Love Actuaries LLP.

The managing partner, Karen Thompson, has asked you to do some quick calculations for her. She wants you to use the current yield curve, flat at 4%, in your calculations.

Client Colin Limited's pension plan obligation has a duration of 14 and a convexity of 31.

Colin's immunization strategy will use 3 bonds, issued by firms named Eleonore, Frissel, and Greta, respectively.

The bonds have the following parameters:

Eleonore: Duration: 8 Convexity: 28

Frissel: Duration: 20 Convexity: 30

Greta: Duration: 25 Convexity: 45

What weights should Ms. Thonpson recommend for Colin's strategy?

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