You manage a pension fund that will provide retired workers with lifetime annuities. you determine that the payouts of the fund are going to closely resemble level perpetuities of $1 million per year. the interest rate is 10%. you plan to fully fund the obligation using 5-year and 20-year maturity zero-coupon bonds. a. how much market value of each of the zeros will be necessary to fund the plan if you desire an immunized position? (do not round intermediate calculations. enter your answers in millions.) b. what must be the face value of each of the two zeros to fund the plan? (do not round intermediate calculations. enter your answers in millions rounded to 2 decimal places.)

Richardson hired j.c. flood company, a plumbing contractor, to correct a stoppage in the sewer line of her house. the plumbing company's 'snake' device, used to clear the line leading to the main sewer, became caught in the underground line. to release it, the company excavated a portion of the sewer line in richardson's backyard. in the process, the company discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line. to meet public regulations, the water pipe, of a type no longer approved for such service, had to be replaced either then or later, when the yard would have to be excavated again. the plumbing company proceeded to repair the water pipe. though richardson inspected the company's work daily and did not express any objection to the extra work involved in replacing the water pipe, she refused to pay any part of the total bill after the company completed the entire operation. j.c. flood company then sued richardson for the costs of labor and material it had furnished. (c) for what, if anything, should richardson be liable? explain."