susana

I think puzzle 1 is an error and should be 8, because we are discounting the required terminal value (which was compounded as the PV of the bond at the MAR over the immunization period, or 4 years, for 8 periods semiannually). In puzzle 1 we are not valuing the bond, so i don't see why 16 is used, we are valuing the terminal value over the immunization period which is not 16 periods, but 8.

Puzzle 2 is not really a puzzle, it says that we use semiannual bond so you need to use semiannual rates when constructing immunization for consistency.