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An insurance company must make payments to a customer of $8 million in one year and $4 million in four years. The yield curve

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An insurance company must make payments to a customer of $8 million in one year and $4 million in four years. The yield curve is flat at 9%. a. If it wants to fully fund and immunize its obligation to this customer with a single issue of a zero-coupon bond, what maturity.bond must it purchase? (Do not round intermediate calculations. Round your answer to 4 decimal places.) Answer is complete and correct. Maturity of zero coupon bond 1.8356 years b. What must be the face value and market value of that zero-coupon bond? (Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places.) Answer is complete but not entirely correct. Face value 10.17 million Market value $ 11.90 million

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