A court has ordered Security Enterprises to pay $300,000 in two years and $500,000 in five years. In order to meet this important liability, they wish to invest in a combination of two-year 10% par-value bonds with annual coupons and five-year zero-coupon bonds. Each of these is sold to yield an annual effective yield of 4%. The two bonds are to be purchased so that the present value and duration conditions of Redington immunization are satisfied at the current 4% rate. What is the face value of the two-year bond that should be purchased? Round your answer to the nearest cent

What is the face value of the five-year bond that should be purchased? Round your answer to the nearest cent.

A court has ordered Security Enterprises to pay $300,000 in two years and $500,000 in five years. In order to meet this important liability, they wish to invest in a combina- tion of two-year 10% par-value bonds with annual coupons and five-vear zero-coupon bonds. Each of these is sold to yield an annual effective yield of 4%. The two bonds are to be purchased so that the present value and duration conditions of Redington immu- nization are satisfied at the current 4% rate. What is the face value of the two-year bond that should be purchased? Round your answer to the nearest cent. Answer in units of dollars. Your answer 0.0% must be within 003 (part 2 of 3) 10.0 points What is the face value of the five-year bond that should be purchased? Round your answer to the nearest cent. Answer in units of dollars. Your answer must be within 0.0% A court has ordered Security Enterprises to pay $300,000 in two years and $500,000 in five years. In order to meet this important liability, they wish to invest in a combina- tion of two-year 10% par-value bonds with annual coupons and five-vear zero-coupon bonds. Each of these is sold to yield an annual effective yield of 4%. The two bonds are to be purchased so that the present value and duration conditions of Redington immu- nization are satisfied at the current 4% rate. What is the face value of the two-year bond that should be purchased? Round your answer to the nearest cent. Answer in units of dollars. Your answer 0.0% must be within 003 (part 2 of 3) 10.0 points What is the face value of the five-year bond that should be purchased? Round your answer to the nearest cent. Answer in units of dollars. Your answer must be within 0.0%