Suppose you want to buy an 18% coupon bond with a face value of $1,000, maturity of 2.5 years, and yield of 20%. Further suppose that you want to raise enough money to buy this bond by issuing a pair of zero-coupon bonds: one with a maturity of 2 years, and another with a maturity of 3 years. Both bonds will have a yield of 20%. If you also want the duration of your liabilities to match the duration of your asset, what should be the price and face values of each of these zero-coupon bonds? (Note: As your first step, you should calculate the exact price and duration of the asset-NOT the price or duration rounded to 3 decimal places-to see exactly what you need to match.) Price of the 2-years zero-coupon bond: _______
Price of the 3-years zero coupon bond: _______
Face value of the 2-years zero coupon bond: _______
Face value of the 3-years zero coupon bond: _______