46. Your firm has sold GICs (guaranteed investment contracts) which promise to pay $100,000 per year for 3 years, with the first payment due 4 years from today. Assume the yield curve is flat at an 8% annual rate. You are going to use 5 year maturity and 10 year maturity bonds to set up an immunized position. The 5 year maturity bonds have a coupon rate of 10% (paid annually), an 8% yield to maturity, and a $1,000 par value. The 10 year maturity bonds have a coupon rate of 8%(paid annually), an 8% yield to maturity, and a $1000 par value. How much (in market value) needs to be placed in the 5-year maturity bonds to both fully fund and immunize your obligation?

Use at least 3 decimal places when completing calculations and show your final answer as a dollar value with 2 decimal places.