Question:

An insurance company has an obligation to pay $1,000,000 at the end of 10 years. It has a zero-coupon bond that matures for $413,947.55 in 5 years, and it has a zero-coupon bond that matures for $864,580.82 in 20 years. The effective yield for assets and liability is 10%. (a) Determine whether the companys position is fully immunized. (b) What is the level of surplus if the interest rate falls to 0%? (c) What is the level of surplus if the interest rate rises to 80%?

Please proper explain and do not copy from Chegg. Otherwise, I have to report the answer.