NEED HELP WITH E PLEASE Consider an insurance company that needs to pay out 10 million in year t=4 and year t=5. The term structure is currently flat at 5% per year. The firms assets at t=0 consist of cash, and its net worth is zero. a. Compute the present value of the firms liabilities. b. If the term structure goes down by 0.5% while remaining flat, what would be the new net worth of the firm? c. Compute the modified duration of the firms liabilities. Compute the approximate change in the value of the liabilities using modified duration. d. Suppose, the firm decides to invest all its cash in one zero-coupon bond with maturity T and face value of 100. What should the maturity T of this bond be to hedge the interest rate risk? e. Suppose, in year 0 the firm invested all cash in the bond described in part d, the interest rate remained flat at 5% throughout year 1. In the beginning of year 1 the firm decides again to hedge the interest rate risk. Solve problems in parts a, b, c and d from the perspective of year 1.