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An insurance company has liabilities of 5 million due in 11 years' time and 13 million due in 17 years' time. The assets of the

An insurance company has liabilities of 5 million due in 11 years' time and 13 million due in 17 years' time. The assets of the company consist of two zero-coupon bonds, one paying X million in 7 years' time and the other paying Y million in 22 years' time. The current interest rate is 7% per annum effective. Find the nominal value of Y (i.e. the amount, IN MILLIONS, that bond Y pays in 22 year's time) such that the first two conditions for Redington's theory of immunisation are satisfied. Express your answer to THREE DECIMAL PLACES

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