Esther needs to pay rent in 5 payments of $2,000. Payments are made annually with the first payment beginning 1/1/2014. She plans to purchase two zero-coupon bonds to cover her costs. The first bond expires in 1/1/2015 while the second expires in 1/1/2019. The annual effective interest rate is 8%. Required:
Based on Redington immanization, calculate the total face amount for the bonds so that Esther is immunited from small changes in interest rates.