(b) A company buys a 3-year zero coupon bond that will mature for $10,000. It plans to use this asset to make two payments to a customer, the first payment is in due in 1 year, and the second payment is due in 10 years. (i) Let X = payment due in 1 year, and Y = payment due in 10 years. Determine X and Y in order to satisfy the first two conditions of Redington immunization if the effective annual rate of interest is 6%. [6] (ii) If the company buys the bond and guarantees the two payments in Part (i), discuss whether Redington immunization is achieved. [4] (b) A company buys a 3-year zero coupon bond that will mature for $10,000. It plans to use this asset to make two payments to a customer, the first payment is in due in 1 year, and the second payment is due in 10 years. (i) Let X = payment due in 1 year, and Y = payment due in 10 years. Determine X and Y in order to satisfy the first two conditions of Redington immunization if the effective annual rate of interest is 6%. [6] (ii) If the company buys the bond and guarantees the two payments in Part (i), discuss whether Redington immunization is achieved. [4]