4. You work for an insurance company. You determine that the company needs to payout $1 million per year for the next eight years. The interest rate is 8%. You plan to fully fund the obligation using 3-year and 20-year maturity zero-coupon bonds. a. What is the duration of the obligations? b. What is the market value of each of the zeros necessary to fund the plan if you desire an immunized portfolio? C. Briefly describe how the portfolio is protected against interest rate changes. Specifically state how interest rate change affects values of the obligations and the portfolio. No calculation is necessary. 4. You work for an insurance company. You determine that the company needs to payout $1 million per year for the next eight years. The interest rate is 8%. You plan to fully fund the obligation using 3-year and 20-year maturity zero-coupon bonds. a. What is the duration of the obligations? b. What is the market value of each of the zeros necessary to fund the plan if you desire an immunized portfolio? C. Briefly describe how the portfolio is protected against interest rate changes. Specifically state how interest rate change affects values of the obligations and the portfolio. No calculation is necessary