n must pay a liability of L one year from now and another liability of 7.6L two The corporation has arranged to exactly match these liabilities with two 8, (896) A corporation years from now. liability of bonds paying annual coupons and maturing at par. The first bond has a face value of 10,000, a coupon rate of r, and matures in one year. coupon rate of 1.4r, and matures in two years. Calculate r. The second bond has a face value of 100,000, a 9. (896) A company has a single liability of 120,000 due at time 6. This amount due will be covered by two zero coupon bonds that mature at times 2 and 12. Find the face amounts of the two bonds needed to satisty the conditions of Redington immunization and check if this attempt at immunization was successful. All payments are evaluated at 5% effective annually