most of the work is done. just need help filling out the question marks.

6. You attempt to finance a 10-year guaranteed investment contract (GIC). The payment made by policyholder is $100 million. Suppose the promised annual interest rate of the GIC is 5%. The bond you want to use is a 15-year, 5% annual coupon rate bond (semi- annually paid). Its face value is $100 million and you bought at par. Suppose the new interest rate in the life of GIC stay constantly at 6%. Answer the following questions: (1). What is the promised payment of the GIC? (2). Calculate the total return of the investment. Key: (1) promised payment = 100,000,000*(1+?) 20 = 163,861.644 (2) step 1: get total future value of all the coupon payments: N-20;I/Y - 3; PV = 0; PMT - 2,500,000; FV-? We get ?? Step 2: resale value of the bond at the end of year 10 N=10: I/Y = 3; PV=?: PMT=2,500,000; FV=100,000,000 We get ?? Step 3: sum up the numbers from steps 1 and 2: 162,910,835 Step 4: get semiannual retum = (??/100,000,000) (1/2)-1-2.47%