An insurance company must make payments to a customer of $13 million in one year and $9 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 ?? 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.)

Face value ?? Million

Market value ?? Million