Dear tutor ,

Please help to solve this problem. Please provide me the correct calculation.

Best regards,

028 - An insurance company must make payments to a customer of $10 million in one year and $6 million in ve years. The yield curve is at at 10%. a. If it 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.) I Maturity of zero coupon bond b. What must be the face value and market value of that zero-coupon bond? (Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places.) Face value Marka value