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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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