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An insurance company must make payments to a customer of $13 million in one year and $8 million in three years. The yield curve is

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An insurance company must make payments to a customer of $13 million in one year and $8 million in three years. The yield curve is flat at 11% 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.) Maturity of zero coupon bond 1.6600 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.) million Face value Market value million

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