##### Q-25. We have three equations and three unknowns. The 10-year face value required is simply = $100 / $0.1 * $100 = $100,000; The five-year face value required is found by solving for F(5) in: F(5)*0.04/100 + $100,000 * 0.05/100 = 60, such that F(5) = $25,000. The two-year face value required is found by solving for F(2) in: F(2)*0.01/100 + $25,000*0.01 / 100 + $100,000*0.01 / 100 = 20, such that F(2) = $75,000. | Financial Risk Manager Part 1 Quiz - LeetQuiz