An insurance company has obligations of $3.5 million a year indefinitely. The company has decided to fund the obligation by purchasing 5-year coupon bonds with Macaulay Duration of 4.1 years, and 20-year zero coupon bonds. The yield to maturity of al bonds is 8 percent. Calculate the market value of the 20-year zero coupon bonds the firm needs to purchase to fully fund and immunize the obligation.

Group of answer choices

$23 million

$18 million

$26 million

$11 million

$15 million