Emerson Insurance Company must make payments to a customer of $8 Million in one year and $3 Million in five years. Assume the yield curve is flat at...

Emerson Insurance Company must make payments to a customer of $8 Million in one year and $3 Million in five years. Assume the yield curve is flat at 9 %.If Company wants to fully fund and immunize its obligation to this customer with a single issue of a zero-coupon bond. Determine the maturity of bond, market value and face value of the bond it must purchase.

Emerson Insurance Company must make payments to a customer of $8 Million in oneyear and $3 Million in five years. Assume the yield curve is flat at 9 %.If Company wants to fully fund and immunize...