16. A corporation has the obligation to pay 100,000 at the end of 2 years and another 100,000 at the end of 3 years. There are 2 bonds available to buy to try and match these liabilities. The first bond matures in 2 years with annual coupons at a rate of 20%, and the second bond has a maturity in 3 years with annual coupons of 40%. The yield rates on both bonds and the reinvestment rates for each of the next 3 years are all at an annual effective rate of 25%. The corporation buys the 2-year bond with nominal value a and buys the 3-year bond with nominal value B. The coupon received at time 1 is reinvested, and any excess payment of the bond over 100,000 at time 2 is reinvested. The amount reinvested along with the bond payments at time 3 are exactly enough to pay the 100,000 at time 3. Find the minimum value of a that guarantees that the cash flow of the asset available at time 2 is at least 100,000. 16. A corporation has the obligation to pay 100,000 at the end of 2 years and another 100,000 at the end of 3 years. There are 2 bonds available to buy to try and match these liabilities. The first bond matures in 2 years with annual coupons at a rate of 20%, and the second bond has a maturity in 3 years with annual coupons of 40%. The yield rates on both bonds and the reinvestment rates for each of the next 3 years are all at an annual effective rate of 25%. The corporation buys the 2-year bond with nominal value a and buys the 3-year bond with nominal value B. The coupon received at time 1 is reinvested, and any excess payment of the bond over 100,000 at time 2 is reinvested. The amount reinvested along with the bond payments at time 3 are exactly enough to pay the 100,000 at time 3. Find the minimum value of a that guarantees that the cash flow of the asset available at time 2 is at least 100,000