Question 4 b What is the duration if the yield to maturity is 10%? Note: The face value of the bond is £1,000. c . An i

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Question 4
b What is the duration if the yield to
maturity is 10%? Note: The face value of the bond is £1,000.
c . An insurance company must make payments
to a customer of £10 million in one year and £4 million in five
years. The yield curve is flat at 10%. 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?