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Hofstader Indemnity Corporation must make payments to a customer of $11 million in one year and $5 million in five years. The yield curve is

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Hofstader Indemnity Corporation must make payments to a customer of $11 million in one year and $5 million in five years. The yield curve is flat at 6% 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 2.0588 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 $ 15.91 million

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