You manage a pension fund, Sunset Partners Limited (SPL), and your liabilities consist of two payments. The first payment is for $17.6 million in 12 years, and the second payment is for $31.9 million in 34 years. The term structure of interest rates is currently flat at 5.5%.

(a) Compute the present value of SPL's liabilities (in millions).

(b) Compute modified duration of SPL's liabilities.

(c) Compute the approximate change in the present value of SPL's liabilities (in millions), using modified duration, when interest rates fall by 0.35%.