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Hofstader Indemnity Corporation must make payments to a customer of $14 million in one year and $8 million in six years. The yield curve is

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Hofstader Indemnity Corporation must make payments to a customer of $14 million in one year and $8 million in six years. The yield curve is flat at 12% a. If Hofstader indemnity 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 of that zero-coupon bond? (Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places.) Face value million

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