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a court has ordered security enterprises to pay $250,000 in two years and $500,000 in five years. in order to meet this important liability, they wish to invest in a combination of two-year 10% par-value bonds with annual coupons and five-year zero-coupon bonds. each of these is sold to yield an annual effective yield of 4%. the two bonds are to be purchased so that the present value and duration conditions of redington immunization are satisfied at the current 4% rate. what is the face value of the two-year bond that should be purchased?
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