As corporate treasurer, you have to pay $$28$ million in one year and again in two years. Bonds of all maturities currently yield $7\%.$Part $2$

If you buy zero$-$coupon bonds with a maturity equal to the duration calculated in the previous part, what should be their combined face value $($in $$)?$ Part $3$

If interest rates suddenly go up to $8\%,$ what is your immediate funding surplus $($positive number$)$ or shortfall $($negative number$)($in $$)?$ Use the exact duration, not the rounded one shown as solution to part $1.$ Part $4$

If interest rates suddenly go down to $6\%,$ what is your immediate funding surplus $($positive number$)$ or shortfall $($negative number$)($in $$)?$ Use the exact duration, not the rounded one shown as solution to part $1.$